Trend online forex
After noting a strong imbalance between the willing buyers and the willing sellers at the demand zone, we drew in our lines for our entry, stop loss and target and then simply waited for price to come to us. An important note about this trade though, is that we were not looking for a huge move to the upside. Rather, the market was offering us a short-term buying opportunity while we waited for the much longer term shorting opportunity.
Let us take a look at how the trade worked out:. Yet an even more important aspect of this trade was making sure that we took a profit, due to the fact that the market was in a much longer term downward trend and we wanted to take an opportunity to join that too.
Below is a screenshot of the long-term Wealth setup:. For this trade, we had a supply zone marked off between 1. Much more patience was required to wait for this setup as it was based off of the larger timeframes and had a much bigger risk to reward ratio.
The reason we took the original long trade was because we were expecting a correction in the marketplace but the real trade we were looking for the big move, was the short at a higher price. As I said earlier in this article, we need to be aware that trends can continue but they need corrections to be able to continue.
After the long trade triggered and hit the target, the supply zone entry was then triggered and worked out like this:. An important note to take when looking at the result of this trade, is that it required time and patience to wait for an entry and also to allow the trade to work out. A professional trader with a solid plan knows the difference between going with the trend and going against it.
They then learn how to time the markets across different timeframes, and recognize different stages of different trends. All this means is that we have to be aware of where trend corrections can occur and then also when the best time to join that trend is, if it does have room to continue.
This is a skill learned over time and with much practice and is well beyond the scope of an article such as this. However, if anything we should remember that simply believing that the trend will always be our friend, is rather a dangerous assumption to make and will lead to much frustration for someone lacking the ability to truly time the markets.
It is important to remember that if trading was as simple as just following a trend, that is what everybody would do and therefore everybody would make money. In the real world of trading this is not the case and the novice will often find frustration in attempting to join a trend, only to find themselves on the wrong side of the markets against a professional with a stop out on their account and then having to watch the market go without them.
My advice is to be aware of the bigger picture and the important part the larger timeframe charts play. You will always see a trend on some timeframes and what looks like a range on another timeframe, only to then see it look like a full-blown trend on a different setting.
The key to consistency is to not overcomplicate and stick to a plan. Follow your rules, execute flawlessly, and monitor your results. In two weeks we will continue this discussion further. I hope you found this useful. Disclaimer This newsletter is written for educational purposes only. By no means do any of its contents recommend, advocate or urge the buying, selling or holding of any financial instrument whatsoever.
Trading and Investing involves high levels of risk. The application works under all versions of Windows. You must be connected to the Internet in order to read the values of the currency couples. If you have an antivirus program you will probably have to set up a rule so that the program can access the Internet. What it does and how does it works Start by clicking the Start button.
The program read once in the minute the medium value of 15 couples of the 6 main currencies. At this point I want to give you two explanations. Since I wanted to show the global pointers, I didn't want to make the application more "heavy" by using buy and sell values, who are variable between one platform and the other. These last ones are those which I use sometimes, while I never trade with the first two couples.
It's only about my personal tastes and I hope it goes well also to you. As it is seen on the screen below, there are 8 couples on the left and 7 on the right of the window. For every couple we have: Name of the currency couple to which the data refer. The first value read immediately after the start of the program, in the square brackets, and in the same line the last six read values.
The linear diagram with the representation of the course of the price from the beginning of the program. In the right side of diagram are written minimums in red and maximum green , occurred during the software activity. Up in the window there are the timetables of the readings of the relative values.
The first timetable is always in the square brackets, as it is refered to the first price. The numeric values and diagrams are both colored: In green , if the price is increased, In red , if the price is decreased, In black , if the price has remained unchanged.
If for some reason the program can't read the values, the place which have to contain the data will be empty. If instead you see all diagrams black and linear, than Forex marcet is closed and you read the closing price.
Software limitations The software can read until Since the reading interval is of 1 minute, the data can be accumulated for hours, that means more than 20 days. Once the maximum capacity is reached, the application is automatically stopped, as if the user had pressed the Stop button.