FX Solutions Forex Trading Tutorial

CURRENCY TRENDS

One of the first things you'll ever hear in technical analysis is the following motto: "the trend is your friend". Finding the prevailing trend will help you become aware of the overall market direction and offer you better visibility--especially when shorter-term movements tend to clutter the picture. Weekly and monthly charts are most ideally suited for identifying that longer-term trend. Once you have found the overall trend, you could select the trend of the time horizon in which you wish to trade. Thus, you could effectively buy on the dips during rising trends, and sell the rallies during downward trends.

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