In today forex faq, I will be answering this question on forex trend analysis. This is particularly important for those of you who are trend trader.
Below is the question
Can you tell me in detail day trading profitable strategies and indicators etc and also tell me the trend identifying tips.
what is the best time frame for day trading
In fact, most of the trading strategies are profitable but it is just how each of us trade with it. Irregardless of the type of trading strategies that you are using, you need to fine tune it to work for you.
As for the forex trend analysis method, there are 2 ways you can do that
1) Forex MACD Indicator – If you have been reading my blog, you will know that the forex MACD indicator is one of my personal favorite as it is very versatile.
To use the MACD indicator to tell the trend, all you need is to see whether the MACD indicator is above or below the zero line.
If it is below the zero line, you are in a downtrend. If it is above the zero line, it is in an uptrend.
2) Multiple EMA – Besides using the MACD indicator, I also make use of multiple Exponential Moving Averages to tell the trend. All you need is to plot the 100, 200 and 400 EMAs and if they are stacked nicely one after another sloping downwards, you are in a strong down trend.
If they are sloped upwards stacking nicely one after another, you are in a strong up trend.
These are the 2 ways you can use to do your forex trend analysis. If you have other ways to tell the trend, do feel free to share them below.