Such is the sense of the vast majority of questions traders taking their first steps in the financial markets.
The answer to these questions is the same:
The trend is your friend. Bidding on the trend.
So ...
What is the trend?
Trend (in translation from English - trend) - is directed forward movement of the price.
Directional movement! That's where the answer to the question beginners. Agree very foolish to buy in a falling market and sell in the growing. To do this, at least, have compelling information that the market will soon unfold.
Where are directed this movement? Who are the "bulls" and "bears"?
Types trend
In technical analysis to distinguish three main trends:
- bull (rising) - every other high and low above the previous
- bearish (down) - each, at a minimum and a maximum below the previous
- flat (side) - the price is in a horizontal band.
Not to be confused with the name of the trend can be represented as a bear and bull cause their attacks:
- Bear - paw down
- Bull - horns upward
The trend in the trading system Masterforex-V
Despite attempts to make some changes and improvements in the definition of a trend, which at one time gave the Dow. Authors of books are changing the words, but from the relocation of the term ...
First, and it remains a mystery why the deal open , seemingly the trend has continued strong
Secondly, there is no specific answer to the question of where it begins and ends with the trend .
Trading System Masterforex-V says that to trade successfully you must use a synthesis of several trends:
- Short-term (intraday) trend - movement directed movement of prices during the day
- Medium-term trend - directional price movement in the course of one or more weeks
- Long-term trend - directed movement of prices on the month and up.
Now, to understand what the big deal is the potential for profit, and which is not, let us remember a fairy tale:
This is not all refinements made to determine the trend trading system Masterforex-V.
For example, is not always the appearance of the peak price below the previous results in the end of the bull market.
Therefore, there was a completely new definition of the trend:
Trend - is directed movement of prices of reversal patterns before turning figure.
You see, it turns out is very simple: there is a trend reversal pattern, so does the trend reverse, no reversal patterns - it's just a correction.
The benefits of a trend trading system Masterforex-V:
- do you know which way to trade
- you can see the beginning and the end of a trend
- you know where to look for the emergence of a powerful movement
- you can tell from the flat of the emerging momentum in the opposite direction.
- you realize when to stay out of the market
There is a new concept of "reversal pattern", but before moving on to a new subject, check what you have learned this.
Read more:
- Support and resistance levels
If you are familiar with these concepts - safely move to the next class: Elliott Wave Theory