What Is Trend Trading?
One of the most popular methods of trading today is trend trading. The reason why it is so popular is easy to explain. A forex trend is a continuous price movement in one direction, when higher highs indicate upward price trending and lower lows indicate the downward price movement or down trend. As the rise increases, the movement of the currency becomes very predictable. The fact that it can be so predictable is the reason why most people who trade forex use this strategy.
The trend trading strategy is were forex traders watch which way a particular trend is going and make trades following that direction. This means that they sell when the price is falling and buy when the price is rising. The main problem here is identifying the trend within a particular time frame.
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