What is Trend Forex? Are you curious about what Trend Forex is? This is a question often asked by newer and intermediate traders who are starting to learn more about Forex trading. In simple terms, Trend Forex Trading is a trading strategy where you will look for the overall trend of the currency market and then execute trades in the same direction as that trend. Instead of going against the market, trend traders will follow along with price movements as they develop over time. This increases the likelihood of your trade being profitable!

What is Trend Forex Trading

In Forex trading, a “trend” is the Direction of Currency Pair (or Gold) Movement. The trend is defined by the general direction a financial instrument is heading in.

If the Price Movement is consistently upward, the trend will be labelled as “Up Trend” – or “Strength”; whereas,

If the price movement consistently moves downward, the trend will then be defined as “Down Trend” – or “Weak”.

If there is no direction consistently, the price movement will be termed as a “Range” or “Sideways Market”.

Trading the trends will allow you to open trades once the trend has been confirmed, and remain in a position as long as it continues in that direction.

What is Trend Forex Types

Mastering the Forex trading strategy “Trend Forex” requires an understanding of the various types of trends.

Types of Trend

1) An Up Trend

• The upward movement of the price through successive higher highs (highs) and successive higher lows (higher, lower) is indicative of increased demand for the currency pair being traded as traders take advantage of pullbacks to buy.

2) A Down Trend

• The downward movement of the price through successive lower-higher (highs) and lower-lower (lows) price levels demonstrates a dominant selling sentiment. Traders look for sell opportunities when the rice retraces to the last (high) sell point level.

3) A Sideways or Range-bound Market

• The price may repeatedly test the support and resistance area, which means that there is no identifiable pattern of higher or lower price action in either direction; therefore, traders do not participate in trend trading through this price zone/area, as there are no clear upward or downward trends.

Best Trend Indicators for Forex Trading

What is Trend Forex? There are various indicators that trend traders may use as confirmations of trends, including but not limited to the following:

• Moving Averages (50 EMA, 100 EMA, 200 EMA)
• Trendlines
• The Market Structure (Highs and Lows)
• Breakout Levels

Indicators are not the source of trends. Instead, indicators are simply a tool that allows you to recognize and validate existing trends in the market.

Best Trend Intraday Strategy for Gold (XAUUSD)

Gold has become widely accepted by traders as an instrument that can generate profits through trend trading; however, it has been most successful for those who are trading on an intraday basis.

Reasons for Gold Coffee Shop Trend Trading Success

1) Gold has high volatility
2) Gold tends to move strongly in a particular direction
3) Gold often reacts predictably to economic data releases and news announcements

Optimal Gold Day Trading Strategies

• Focus on London and New York trading sessions
• Use higher time frames (H1 or H4) to locate the long/short trend direction
• Execute trades on lower time frames (M15 or M5) in line with the trade direction
• Do not look to counter-trend (trade in the opposite direction of the main trend)
• Risk Management is very important when trading Gold due to the speed of movement.

Trend is Your Friend: Meaning in Forex Trading

“Trend is Your Friend” is a phrase that indicates that traders will increase their odds of success by taking trades that follow the overall direction of the market.

Why is this rule important?

The length of time that trends can last will usually exceed our original expectations.

Counter-trend traders have a lesser probability of success.

Profitable trades generally come from following strong trends.

A Professional trader will place more emphasis on continuing to trade with the trend, rather than trying to forecast trend reversals.

Broker for Trend Trading

When selecting a broker Like an Exness, HFM and AVFX for trend trading, it is important to choose a broker with the following characteristics: low spreads, speedy execution, access to either a reliable MT4 or MT5 platform, no restrictions on holding trades, good regulation and customer service; additionally, trend traders tend to be in trades for longer periods of time, so high levels of stability in execution and low trading costs are very important to trend trading strategy success.

Final Thoughts: What is Trend Forex

What is Trend Forex? The best way to summarize trend forex trading is to say that it should be a pure technical approach where you simply follow the price of the currency instead of getting emotionally involved with it. Trending is the safest and most frequently used of the forex trading methods as it allows you to be in sync with the movement of the market.

What is Trend Forex Video