Forex Trading Skill: How To Identify The Trend The Easy Way!
In this Forex trading vlog, I share a technique on how to identify the trend in the Forex market easily. Vlog #235.
How To Identify The Trend – Step-By-Step
It comes down to 3 steps:
- Selecting the right timeframe based on your trading style
- Looking at past highs & lows (I cover this in details)
- Trading as usual based on the trend
Common Mistakes & Things To Be Aware Of
One of the big mistakes I see new traders make is looking for the “perfect alignment” across all timeframes. Very rarely will the price be in the same direction on all timeframes. Requiring that in your trading plan is a simple way to feel confused.
In addition to that, although we often hear that an uptrend is marked by higher highs and higher lows, it's important to mention that we must have BOTH higher highs and higher lows. Having only one of those criteria will likely result in a random phase of the market, which isn't always good to trade.
Are you using a similar technique to identify the trend in the Forex market? Has this article helped you? Comment below and let me know!
If you are aspiring to trade for other people while traveling, you might want to consider checking out the Desire To TRADE Academy where I’ll help you do precisely that!
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