How to determine the daily trend in forex

However, the point of implementing forex trading rules for myself is take a lot of the subjectivity out of trading. Furthermore, what about trends within trends? Surely we can be in an uptrend on one timeframe but a downtrend or even no trend at all on another. As you can see, saying that you will trade in the direction of the trend leaves a lot open to interpretation.

How to Determine a Forex Trend - Forex Made Millionaire

Developing a set of rules to properly define what a trend entails 2. I spent the last hour or so creating a spreadsheet that will help me validate trends and provide a visualization of my opportunities based on those trends. As you can see, there are two tables here. The first is simply how I perceive the trend of each currency pair on different timeframes.

I manually looked at the charts and input the forex trend to be either up, down, or sideways no clear trend.

How To Trade With Trends In Forex » Learn To Trade

The second table is my trade opportunity visualization and requires no manual entries. It is purely populated from the data entered into the first table.

That sounds confusing, I know. So let me go through an example.

We can see the forex trend is currently currently down. However, we also need to confirm that this trend is valid.

That may be true, but I prefer to do this because in my experience it increases the odds of a successful trade. However, if we drill down to the 1-hour timeframe we also notice that the trend is down:.

This means, since the 4-hour and daily trends have already been confirmed to be in a downtrend, we could take a short EURUSD trade based on the 1-hour trend should an opportunity present itself.

Updating this daily would not be much work and it should prove to be a valuable tool. Trading is a game of probability. If you have an edge, you know that over the long-run you will come out ahead. In short, you want to put the odds in your favor as much as possible. Because of this, it is important to confirm your forex trend bias, or rather what you believe the trend to be on any given timeframe. For example, the trend on a minute chart could be down.

But that downtrend could simply be a correction in an overall uptrend. But if it is a correction in an overall uptrend, do you really want to be trying to make a handful of pips trading against the trend?

The last piece of all this is obviously having rules for what actually defines a trend.

Admittedly, I still need to put some rules in place for what exactly determines a trend on each timeframe, but I already have some ideas for this. I really just need to flesh out the specific rules, and I will write about that once I get those in place later this week. Do you do something similar?

2-The Easy Forex BREAKOUT Trend Trading Simple System

If not, how are you spotting opportunities across different pairs and different timeframes in an efficient manner? I began trading forex in It took me seven years to figure out how to be consistently profitable.

I blog in an effort to hopefully help other aspiring traders become successful much sooner than I did. Geppy, You are one shining bright star. Very helpful and also confirmation of the way I trade.

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Just discovered your blog. Keep up the GOOD work: If you want to learn trend trading though, you might want to check out my Patreon group here: Hi Geppy, thanks for this wonderful piece. I have been trying to figure this out for about 3 weeks now and just stumbled unto your site. It confirms a lot of my thoughts and has been so helpful. Could you elaborate on how you created the, Overall currency trends per Time-Frame and Trade Opportunities Per Time-Frame excel sheet? I checked the two trend excel visualizations Overall currency trends per Time-Frame and Trade Opportunities Per Time-Frame and they seem to be consistent, even with older years, using Trade Opportunities Per Time-Frame at the catalyst, so I am also wondering if an updated version is even necessary.

Hi Mark, sorry for the delay here. Your email address will not be published. Don't subscribe All Replies to my comments Notify me of followup comments via e-mail.

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Geppy Forex I began trading forex in January 5, at January 5, at 3: January 14, at 7: January 14, at 5: January 17, at 7: January 17, at January 18, at 7: January 6, at 9: March 3, at April 11, at 6: May 31, at 7: October 2, at 5: October 2, at 8: October 28, at Hey Geppy Forex, Thanks for the post.

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