How trend is important in Forex

1
Is Trend Really Your Friend?
EQUIDIOUS RESEARCH
1(347)434-9044 www.equidiousresearch.com
2
The trend is your friend is one of the best
known sayings, although its message is
incomplete. The full version should be, The
trend is your friend, until the end when it
bends. The trick with buying stock is to to be
patient through the small changes in price until
you can identify the point when the trend makes a
change in direction or bends.
KNOW ABOUT TREND
For Best Forex Signals www.equidiousresearch.com
3
A trend is not actually a strategy by itself
its just an added point of confluence that
increases the probability of a trade. However,
just randomly jumping in with a trending market
is not an edge or a strategy. The longer the
trend, the more and more people who are all doing
the same thing i.e buying or selling, people who
are not in the trend will look at this and think
they should also begin buying or selling as that
is what everyone is doing.
KNOW ABOUT TREND
For Best Forex Signals www.equidiousresearch.com
4
For Best Forex Signals www.equidiousresearch.com
5
A downtrend is a series of lower highs. At each
of those points, sellers are deciding that they
have had enough and it is time to get out of the
stock. When these sellers perhaps urgently
accept lower prices to dispose of their stock,
the number (supply) of stocks pressures price
lower and helps the trend to continue lower.
WHAT IS DOWNTREND?
For Best Forex Signals www.equidiousresearch.com
6
If an investor considered to buy this stock
during the period shown in the chart, that
investor would be buying the stock in a
downtrend. There are many ways to lose money in
the market, but I think that buying a stock in a
down-trending has the highest probability.  Of
course the trader wants to be successful in
making money.  A smart trader will use trend
following as his friend.   He will wait until
the trend changes direction with a new higher
high price on the chart.  This is the sign of a
change from downward to upward trend.
DOWNTREND IN ACTION
7
An uptrend can be defined as a chart with
consistently higher lows.  At each higher low,
traders are deciding that the pullback in price
is a good time to purchase more of the
stock. The buying pressure of more and more
investors deciding to buy the stock adds more
demand and so a higher stock price.  This can be
shown on the stock chart as the stock continues
to move in an uptrend.
WHAT IS UPTREND?
For Best Forex Signals www.equidiousresearch.com
8
As a stock is mired in a downtrend, traders can
look back and identify the most recent interim
high price where the sellers turned price lower.
At this point, I recommend that one consider
buying the stock if and only if it goes up above
that most recent high price. The current
price rising above the most recent high price is
what signifies that the trend in price may have
changed from down to up.
CHANGE IN TREND IN ACTION
For Best Forex Signals www.equidiousresearch.com
9
(No Transcript)