Have you experienced times when forex trading your Expert Advisor (EA) was profitable in the trending market and suddenly all the profit was taken back in a series of losses? What is the reason and HOW TO AVOID IT?
Learn the truth about Forex in this article.
Let me explain the basic principle on how most Forex systems work. They are tuned up to work in a specific market condition. They often make money in a trending market, but loose money in a choppy market.
It is not a problem as long as the market is trending and the system is making more money than it loses. Such a system can be profitable for several months and you would be happy with it. BUT, things can change very quickly.
PREPARE FOR THE WORST…
Market change over time. A well-designed system starts with trend analysis to stay away from potentially losing trades. There are two problems of how a Forex system recognizes the trend.
The simplet way to identify trends, is to use a methos called price action. Higher highs and higher lows signal an upward trend and a lower highs and lower lows represent a downward trend. This technique allows a trader to read the market and make trading decisions based on the recent and actual price movements.
Forex Trading Strategies
The truth about Forex is that the system responds only to immediate price action. An explosive price movement that is usually the result of news release is tempting people to jump in and make a profit. It looks like a “strong trend”, but what usually happens next is a hard fall.
To avoid falling into this trap, check for the SOLUTION to find a REAL trend: Forex Trendy – The Real Solution FX Traders Want
What are the COMMON MISTAKES traders do when drawing trend lines?
Drawing trend lines is one of the few easy techniques that really WORK. Prices respect a trend line or break through it resulting in a massive move. Drawing good trend lines is the MOST REWARDING skill.
The problem is, as you may have already experienced, too many false breakouts. You see trend lines everywhere, however not all trend lines should be considered. You have to distinguish between STRONG and WEAK trend lines.
One good guideline is that a strong trend line should have AT LEAST THREE touching points. Trend lines with more than four touching points are MONSTER trend lines and you should be always prepared for the massive breakout!
Chart patterns such as “Triangles, Flags, and Wedges” are price formations that will provide you with consistent profits. Before the age of computing power, the professionals used to analyze every single chart to search for chart patterns. This kind of analysis was very time-consuming, but it was worth it.
Now it’s time to use powerful dedicated computers that will do the job for you. Get Forex Trendy the intelligent software solution with audible alerts and receive more super tips about trading chart patterns!
Most systems use various indicators to determine the trend. Actually, the truth about Forex ia that there is nothing bad about using indicators. One Simply Moving Average can do the job. The problem comes with the question: “Is the market trending NOW?” Whether the market is trending or not trending is not like black and white. The correct question is: “How well the market is trending?”
Trends exist and they can be traded up and down for a profit. You have to focus only on the most reliable market trends. “Forex Trendy” is a software solution to find the BEST trending currency pairs, time frames and compute the trend reliability for each Forex chart: Forex Trendy – The Real Solution FX Traders Want
Forex Trendy Software
Many questions about the cool “Forex Trendy” software. Here are the answers to the most frequent questions.
Q: Which platform to use with this software?
A: You can use any trading platform! Yes, you can use MetaTrader 4, MetaTrader 5, TradeStation, NinjaTrader… because the software runs on dedicated computers and you only need a web browser to get the instant result online.
Q: How many currency pairs does Forex Trendy scan?
A: It scans 34 Forex pairs on 9 time frames from 1-minute to monthly. Together 34 pairs x 9 time frames = 306 charts.
Q: What method is used to determine the trend?
A: The trend reliability is determined by the “Trend Drawdown” – a method that uses no indicators, but pure price action. This method is explained in the ebook you will get in the subscription.
Q: Which configuration do I need?
A: Use the latest version of any major web browser (Internet Explorer, Firefox, Chrome, Safari, Opera…)
Q: Does it work on mobile devices?
A: Yes, it has been tested on several mobile devices and browsers.
Try it now: Forex Trendy – The Real Solution FX Traders Want