Read the Forex Trend
There are 2 ways to read forex trend that is:
Using trend lines
Because the characteristic of a trend is to move "MORE" into time, then for the uptrend can be with two valleys that MORE rising. As for the downward trend with a hill top which is MORNING lower.
From the second point of the MORE, we can draw a trend line. As long as the graph does not span the trend line then it is in the trend.
2. Using indicators
Reading trends using technical indicators is easier than drawing with trend lines. For trends.
The main rules of reading trends with indicators are:
If the indicator is below the chart, then the trend is bullish (up trend), otherwise if the indicator is above the chart, then the trend is bearish (down trend).
How to read forex trends above is the easiest and most common way. In practice there are many ways to read trends ranging from simply reading one candle to the most complicated indicator.
But in the same way how to overcome the trends as above we have a basic foundation in determining the trends that will occur.
Understanding and Reading Bollinger Band
There are 4 Phases of Bollinger Band Movement that we must understand so that we can determine the strategy that will be used in each condition, that is:
1. Normal Condition
The normal bollinger condition with the same band band width over time. With a mandated shape but not narrowed, or sloping according to the trend with a degree of slope below 45 degrees.
In the normal bollinger market conditions will be back and forth ribbon ribbon. Especially when the outside ribbons market, then the market will return ketengah.
Ribbon band bollinger band is also referred to as dynamic support / resistance.
In normal bollinger conditions, a suitable strategy is scalping.
2. Prepare the preparation phase
The preparation phase of this break with bollinger is ok narrowed or flat. The reason could be that the market is completely deserted, or because sellers and buyers are waiting.
Strategies that can be used in this condition is a strategy trap (traping)
3. Break phase
Break conditions with the upper and lower bands widened away. This happens because the burst of order becomes a huge market power. The impact the market will move straight.
In the resting phase there can not be a trend reversal in the normal way, since it is convergent.
A suitable strategy under these conditions is a breakout strategy.
4. Phase Normalization Rest
This phase is to find balance and testing trend.Disinilah strength of a trend in the test.
This phase with ribbons that move in the same direction as the trends that have been formed. The impact of the chart will be horizontal or wedge pattern is formed. In a condition like this do not go into the market, the quaint wait until the next signal appears
5. Phase Closure Break
At the close of this break bollinger band will narrow. The direction of the market in this phase is usually flat or trend with newly formed trends.
In this condition while waiting for confirmation of the signal that will appear next.
That is how to read bollinger bands, which in some ways to cope with the market crowd. In its development a trader can determine the direction of the next market from just reading bollinger bands as above.
Using trend lines
Because the characteristic of a trend is to move "MORE" into time, then for the uptrend can be with two valleys that MORE rising. As for the downward trend with a hill top which is MORNING lower.
From the second point of the MORE, we can draw a trend line. As long as the graph does not span the trend line then it is in the trend.
2. Using indicators
Reading trends using technical indicators is easier than drawing with trend lines. For trends.
The main rules of reading trends with indicators are:
If the indicator is below the chart, then the trend is bullish (up trend), otherwise if the indicator is above the chart, then the trend is bearish (down trend).
How to read forex trends above is the easiest and most common way. In practice there are many ways to read trends ranging from simply reading one candle to the most complicated indicator.
But in the same way how to overcome the trends as above we have a basic foundation in determining the trends that will occur.
Understanding and Reading Bollinger Band
There are 4 Phases of Bollinger Band Movement that we must understand so that we can determine the strategy that will be used in each condition, that is:
1. Normal Condition
The normal bollinger condition with the same band band width over time. With a mandated shape but not narrowed, or sloping according to the trend with a degree of slope below 45 degrees.
In the normal bollinger market conditions will be back and forth ribbon ribbon. Especially when the outside ribbons market, then the market will return ketengah.
Ribbon band bollinger band is also referred to as dynamic support / resistance.
In normal bollinger conditions, a suitable strategy is scalping.
2. Prepare the preparation phase
The preparation phase of this break with bollinger is ok narrowed or flat. The reason could be that the market is completely deserted, or because sellers and buyers are waiting.
Strategies that can be used in this condition is a strategy trap (traping)
3. Break phase
Break conditions with the upper and lower bands widened away. This happens because the burst of order becomes a huge market power. The impact the market will move straight.
In the resting phase there can not be a trend reversal in the normal way, since it is convergent.
A suitable strategy under these conditions is a breakout strategy.
4. Phase Normalization Rest
This phase is to find balance and testing trend.Disinilah strength of a trend in the test.
This phase with ribbons that move in the same direction as the trends that have been formed. The impact of the chart will be horizontal or wedge pattern is formed. In a condition like this do not go into the market, the quaint wait until the next signal appears
5. Phase Closure Break
At the close of this break bollinger band will narrow. The direction of the market in this phase is usually flat or trend with newly formed trends.
In this condition while waiting for confirmation of the signal that will appear next.
That is how to read bollinger bands, which in some ways to cope with the market crowd. In its development a trader can determine the direction of the next market from just reading bollinger bands as above.
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