Forex Trend Detection


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Long term profitable Forex trading warrants long term goals and objectives. One good idea is to have an excellent trend based trading system. Just having one will not really work out if you do not follow it in a disciplined manner. Building a trend based trading system is no mean task. The basic skill lies in solidifying the rules for trend detection and adhering to them religiously. Some studies like DMI, Parabolic, MACD, Stochastic etc. are available which could be used as trend filters.

These studies are only indicators in the long run. It would always be advisable if a trader has an advisor or a consultant who would really undertake these tasks on his behalf. A consultant would analyze with a more technical relevance than a trader would, and would make sure of the percentages of profit are good despite a few losses on the average. Moreover, trend is just an indicator; it cannot earn or guarantee profits. Trend only assures that the average trend moves in a particular direction – up or down. It is not realistic to make such profit every month depending on trend. Trend changes will reflect on your trading system a little late, so being on the cautious side is always advised.

Trend is required to be updated on a regular basis for it to work for you. Most traders forget this rule since they feel holding position is more important than taking pains of adding another trade. They normally open a trend after closing the previous one. It is not the correct practice to success. Updating trend after consultation and proper analysis is one of the most effective ways of becoming a Forex trader.

Updating trend will also enlighten a trader as to where he should fix his losses. So before your Forex trade starts bleeding without your notice, update your trend and be prepared to succeed.

Divyansh sharma is a successful foreign exchange trader. you can learn more about his techniques at


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