In today forex faq, we have this question from one of our fellow traders
I always had trouble entering a trade. I wasn’t sure if the market is changing trend or simply stepping in momentum in the same direction.
There are 3 ways you can go about doing this
1) Multiple EMA Trend Technique
One of the best way to tell the trend is to use the Multiple EMA Technique. All you need to do is to plot a 100, 200 and 400 EMA.
When they are all sloping with good angle and separation in a particular direction, it means that the trend is strong in that direction.
When they are all flat and clustered together, it means that the market is in consolidation and has not decided whether to continue in its trend or reverse.
This is another technique that you guys can use which is to analyze your chart from the higher time frame to the lower time frame.
You can start from the daily chart to analyzed the trend there and then move down to the 4 hourly chart and then move down to the hourly chart and then to the 15 minutes chart.
Sometimes when you see that the price is moving up on the 15 minutes chart but the overall trend is down for the other 3 higher time frame, you know that this is just a retracement and not a real reversal.
3) Special Fibonacci Techniques
The Fibonacci indicator is a good tools to tell the trend but for this techniques. For those of you who are a student of my Fx Street Uni course, you should know how to use this indicator to tell if the market is making a change in trend or it is simply stepping in the momentum in the same direction.
I am unable to share more about this techniques here as it will be unfair for those who took my course.
I hope that I have answered your question and do feel free to email me if you have any question
please how do i access you training?
i am a new trader from Nigeria who little to nothing to pay for knowledge not because i don not value training but due to hash economic recession in Nigeria where we work for 6-8 months without receiving our monthly salary.
please i need you to tell me how to get your training materials.
god bless you .
Hi
You can find out more about my course via the link http://www.forextrainingclassroom.com
Hi
Great post as usual.
Just want to thank you for making me $1,000+ this month with your trade copier service
Thks for the tips