Trends are a beautiful thing!!

Hey Everyone, this is Nathan Tucci, and I wanted to write a little about trends in the market and why they are so crucial to being a successful trader. Please contact me with any questions and feel free to leave comments!

A trend is simply the idea that the market, concerning a certain pair, is moving in the same direction for a long period of time, right?

If that is the case, it is simple logic that we should be trying to find trends to ride, because something that is moving in a certain direction for a long period of time is likely to continue to move in that direction.

And the best part is, trends are SO EASY to find–they are all over the place! And now with the Winner’s Edge Trading Power Indicator, you can find the best trends in the market. I believe, if you have a few key requirements to making a trade, your chances of being profitable are incredibly high.

Here’s what you need:
1. A TREND!!!!! (Power Indicator will help you find the best ones)
2. An entry bar (a nice candle in the direction you are entering the trade)
3. Risk management (a target that is at least twice as much as your stop)
4. Common sense (Don’t trade against news that will reverse the trend or if there is obvious support or resistance going against you, you need to keep that in mind as well.)

If you have those few things, you’re set for success.

Let me give you just one example:

First, I let the power indicator help me locate some trends.


I picked the USD/CHF, because of the suggested trades, the USD/CHF had been trending the longest. A good idea to see if a “trend trade” is good, is to zoom out and see if the longer time-frame is trending the same way, which in this case, it is.

So let’s take a look at the chart that the Indicator is suggesting we make a trade with:
click on the chart to see it in full size.

That is a SWEET downtrend. This is the hourly chart, and as you can see, the pair is falling continuously. Remember when I said you need an entry bar? Well, I circled about fifteen of them that would have been good entries on this trade! See how easy this is?

So, remember, a trend ALWAYS improves your chances of winning a trade. If you are a professional trader and like to look for reversal patterns, that is impressive and admirable, but for the rest of us, the trend is the way to go.

Look at the Power Indicator, choose a good trend, wait for an entry bar, and use risk management, and there is no way you can’t make money!

This is the way I make trades, and I am up several hundred pips in my account as a virtual beginner!!

Follow me on twitter for my daily trades 🙂

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Winners Edge Trading was founded in 2009 and is working to create the most current and useful Forex information and training available on the internet.

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  • Frz_i

    Hi
    Thank for your analysis .my email is [email protected] com thanks.com.would you please tell me more about the strategy that you use.or introduce some strategy?

  • Anonymous

    Hey Lionel, I get what you’re saying. The most important thing is to make sure that the pair is not too high or low already when you’re making an entry. For instance, you don’t want to go short when the pair is already at the low for the day because it has to move up eventually. One way to help you detect this is a moving average. I use the 20point SMA. If the pair is already way above the 20 point, don’t go long and if it is already way below it don’t go short, you know what I mean?

  • Lionel

    Hi, Nathan, I ve follow thru the power indicator for quite some time. No doubt this is a powerful to search for the right pair to trade at a particular time. However, sometimes, it seem not to work well with my trade plan (i.e.  loss : Reward = 30 pip : 60 pip ). When the entry is made, the trend go -15 pip > -29 pip and then stop loss trigger, then -15 > 1 > 20 > 30>60 pip ( but no profit gained!). You are in the right trend but go into wrong timing esp for those trade with small stop loss. 

    Any precise guide line to make an entry ( sort of launching a rocket) that very minimum mistake can be made so that we can ride on the trend smoothly.Apologise for the long essay written…..

  • Anonymous

    Hey, great question David. One of the most important parts of my trading is about time frames. I always make entries on the hour charts–I love the hour charts, but I do not only look on the hourly. What I do is check the indicator on the day first and see what pairs look good for the entire day, then I check the four hour to see which are moving on that time frame. Then I check the hour, and if there is a pair moving nicely on the hour that is ALSO moving on the bigger time frames I am very confident that it will continue to move a while on the hour also (most of my targets are less than 100 pips, so I don’t need massive moves to consider it a successful trade.)… check out my “How I choose my trades article for more details about how I do it….

  • David

    Thanks for the post. I’m curious to know if you are entering trades on the hour chart, as in this example, what time frame are you looking at on the power indicator for the trend? Thanks

  • Anonymous

    Hey thanks for the comment, the indicator was down for a short while yesterday for some upkeep, but it is working fine for me now.

  • Anonymous

    That’s why you need to follow me on twitter to get my live updates on the trades I’m making.

  • king

    Hey Nathan
    Great article.
    However, I think something is wrong with the power indicator, is it down or something?

  • Farid

    U show us what was happened but show us what will happen