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!!
Latest posts by admin (see all)
- Money Management in Forex: More Than Just Trading - February 17, 2018
- Identifying Trends through Synchronization - February 17, 2018
- Using Multiple Trendlines to Identify Better Trades - February 15, 2018
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