How to determine the trend

Trend is the most sought after and hunted by traders. whoever can be found, he is the most profitable.

The true meaning of the trend itself is the long movement / tendency to move to one direction in a longer period of time. Once we get in the beginning of the trend and come out at the end of the trend, you are very much.


Then how do the trends?

Long movement should have a strong foundation. Can be likened to a high building needed a strong foundation.And to reach the top of the building must climb the stairs.

The flags that will occur will be the trends are:

1. The existence of the valley is increasingly rising (rising trend) and the peak of the more low (down trend)

2. The strong trend of movement is not too significant, so the trend slope angle below 45 degrees or is forming a parabola.

3. The indicator when the second Peak indicates overbought. And indicates oversold at the time of the second valley.

On the ascending trend The point entry is when a forwarding candle emerges shortly after the rise of the valley.

rising trend is a rising trend

On down trend The point entry is when a forwarding candle emerges shortly after a low peak.

downward trend downside trend

That's how to determine or trend trends. In essence, to move long, the trend should stand on a strong, saturated condition.

Because what we will predict is the long movement, then the indicator used to measure market saturation is an indicator with a rather long period. In the example above use stochastic oscilator (9,3,3).

How to determine a breakout

What is breakout? Breakout is a long movement in the shortest time performed by the graph after it succeeds.

Forex trading using the breakout strategy of the excess is the result of the profit generated in a short time (because the market moves long), also the price really move in one direction, the price is definitely according to our prediction.

However, for the scalper, the price earned if the entry is already violate the requirements are late. They rate an breakout is half a trending trip.

Therefore, if using a breakout strategy, it is advisable to transact in larger quantities than normal transactions. Similarly, the breakout is half the trend, the result is the same as one trend.

The characteristics of an escape:

1. Preceded with a flat or narrow bollingerband.

2. At break point the bollinger line widens

3. Volume occurs after higher than previous volume

4. Candle occurs longer than the previous candle, but not too extreme, is also a candle type of continuation.

5. Candle when it starts to climb higher the previous chart peak, at which time the break down candle is lower than the previous chart valley.


Entry point is when the candle has just formed. It means the price is still around the open price.

That is how the forex analysis determines the breakout In essence for the occurrence of escape, there must be a penetrated limit (support or resistance) that there is a strong force to penetrate it, ie large volumes.

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