Chart Technology Strategy – Forex Strategy for Traders
In the Forex Trading area, the Strategy Strategy – Forex strategy for traders is the most widely used trading strategy. This strategy is based on tracking a trend that is currently emerging in the chart. It is also referred to as the Forex Trend Success strategy and is very popular among beginners. The method is based on the well-known wisdom on the stock exchange that many traders can not be mistaken and is often called “The trend is your friend”. For many beginners in trading with Forex values and also for some advanced traders it is worthwhile in many cases to follow a trend that is just beginning to happen.
Follow the Forex Trend strategy
The Forex Trend Strategy is a general trend-following strategy that applies to every market. A clear trend should be seen in the observation of the Forex market before applying this strategy. A wide variety of tools can be used to identify a trend. Then the trend-following strategy can be applied for an indefinite period of time. Care should be taken to ensure that the trend can be changed at any time.
Use the trend-following strategy correctly
The trend-following strategy can be applied for an indefinite period of time. This can be pursued until a trend change is foreseeable. The tools that can be used for your use are, on the one hand, indicators which are used to confirm a trend sequence. On the other hand, these should also be used as trade signals, which show the change of a trend. These indicators can be found in a wide range of analysis areas. In the following, the technical analysis and its applicability for the analysis of the chart as well as the trend-success strategy with its different methods for the chart analysis will be described in more detail.
The technical analysis of the chart
The technical analysis of the charts can be used for tracking the trend-following strategy. In technical analysis, principles are derived from important data from the past and present. This study examines which sliding averages can be verified as precisely as possible by an existing trend. The MACD theory as well as the Bollinger band formations can be accepted. Trade signals can be read on the basis of these theories on the basis of the intersection points with the moving averages, while the trend direction can be foreseen.
The limits of chart analysis
The frequently used candlesticks, which form the formation of the chart, are a well-known method for recognizing trends. In addition, there are already known chart patterns, which are interpreted as trend trend indicators by analysts in chart analysis. The head-shoulder formation is only one of the many known formations from which a chart analysis can be derived. There are also the well-known formations: double-top and the double-deep formation. Due to these structures, resistance points as well as support lines are established. These simple patterns are also easy to identify for beginners. It is a bit more difficult for the beginner to set a trend for the more complex structures. Because rectangles, triangles or a flag can best be interpreted by the traders, who are already a bit more knowledgeable and have more experience trading on the Forex market.
The Forex Trend Strategy at overview
– The Forex Trend Strategy is a trend-following strategy.
– The moving average is taken as the basis of many analysis indicators.
– There are different chart patterns that provide a clue to changing a trend.
– Price fluctuations are limited by trend channels.
– The trend-following strategy is optimal for beginners as it is easy to understand and easy to use.
Use trend channels correctly
The trend channels are an important feature of the trend-following strategy. A trend channel is formed by two lines, in the middle of which the trend runs. If the course is over or under one of the two lines, the course is spoken of. At the same time, such a course is interpreted as a sign of a trend reversal. This does not necessarily have to be the case, because if the course of the course returns to the trend channel, then a short-term outbreak of the price is assumed and the trend continues. However, many traders place their stop-loss orders exactly on the brand of the trend, so that premature closing of positions often results in premature exit.
Detect the end of a trend
For most traders, not only the beginning of a trend is important, but also the end. There are a number of formations from which a trend reversal can be easily seen. For example, the V-formation, that is a course of the course, which is in the form of a Vs. However, caution is advised, since counter-movements can also look like a V. If the course falls, an A-shape can be made.