Forex Trend Trading

Trend is another word for direction of a Trade. In Forex Trend Trading, you look for a Trend and simply follow that trend. A market direction or trend can be up, down or sideways. All traders and investors are concerned about trends, because depending on what trend it is – it will bring you profits or losses. In order to make money you must know how to spot a trend. You must also know when a trend is going to change. Forex Trend Trading is indeed and art for some.

How To Determine A Trend

Traders use indicators to determine where a trend is going. So what is the easiest way to participate in Forex Trend Trading . Let's look at support and resistance. Support is a price level at which a currency stops falling. Resistance is the opposite of Support. Resistance is a level at which price stops rising. Support and Resistance are never the same lines on a chart, but zones in any given market day.

The most widely and popular way to determine support and resistance is by using trend lines. To draw a support trend line, draw a straight line under price lows on your chart. To draw a resistance trend line, draw a straight line above price highs on a chart. These are some simple tidbits that we hope can get you started in Forex Trend Trading. We teach various methods in Forex Trend Trading in our Forex Room. If your are interested in learning more about Forex check out our Forex Trading Room.