Forex Secrets Revealed: The Awesome Raw Power Of Trading The Trend Unleashed

Forex Secrets Revealed:

Forex Secrets Revealed:

You may have heard the motto: "a trend is your friend until it bends". Technical analysis helps us to locate a trend so we can jump on and ride it until it changes. Since the Forex market has very strong trends, technical analysis is a very effective technique.

Some traders still insist on trading in contradiction of the trend, they argue with it even though price actions are apparently in a trend. Buying when the currency is in a basic downtrend or selling when it's in an uptrend, instead of buying.

Our primary purpose with these forex secrets is to locate the major trend, intermediate trend and the short term trends and place trades in that direction. We then hold position until our calculations suggest otherwise.

Here's a passage from Jesse Livermore, a persistent, flamboyant and profitable Forex trader,

"We know that prices move up and down. They always have and they always will. My theory is that behind these major movements is an irresistible force. That is all one needs to know. It is not well to be too curious about all the reasons behind price movements.

You risk the danger of clouding your mind with non-essentials. Just recognize that the movement is there and take advantage of it by steering your speculative ship along with the tide. Do not argue with the condition, and most of all, do not try to combat it."

There's magic in these forex secrets. If the market action uncovers an analysis to be accurate, the winning trader will stick with that market and maximize profits according to his or her equity management rules.

If the market changes, the intelligent trader will get out and amass profits.

Watch the market and pay attention to what it tells you about upcoming trends and most critically don't look for reasons for what it does, conentrate on the essentials.

There are often recycling patterns in price changes. Once established. They develop into the most probable way to predict price changes.

These markets can be categorized into two principal types, trending and trend-less. Trending markets exhibit up and down trends; these are usually constant and are steady movers with sporadic pauses or profit-taking periods.

Trend-less markets bear very steep movement that most often can't be sustained. Although price movements can move a considerable number of pips in a abrupt time period they often don't generate much net profit.

Shifting markets often produce stop outs and the sideways market, with nominal price movements makes it very arduous to predict which way the price will move.

For these reasons, our target is to get into a trending market and accomplish our trading objectives.

The main message of these forex secrets here is, Be a good friend to the trend, a clear-cut concept but powerful none-the-less.

by: Erik Shimer

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