فوركس ساتو

TRENDS
FOREX is considered to be a very “trendy” market (not fashionable,
but that the prices trend). One of the reasons why traders love
FOREX is for this reason. FOREX trends very well, and in fact if
all you knew how to do was to follow trends properly then this alone
could make you a very nice income.
The most basic technical analysis tool is the “trend line”. All traders
use this. It is amazing how the markets repeatedly bounce off the
trend line, making a nearly perfectly lined up series of highs or
lows. It almost looks like a rubber ball bouncing along a concrete
floor. A trend is usually recognized when 3 or more bottoms/lows
line up.forex sato
FOREX Surfing
You know that a market is trending up if it is making a series of
higher highs and higher lows. If you draw a straight line connecting
the bottoms (approximate best fit) then you have just drawn a
“support” line (as it supports the prices up). Here is a chart with a
“support” trend line. (Note what happened when the trend line
broke. Also note the “triangle” (explained later) just before it
plunged 100 pips.) forex sato

You know that a market is trending down if it is making a series of
lower lows and lower highs. If you draw a straight line connecting
the tops (approximate best fit) then you have just drawn a
“resistance” line (as it resists the price from going higher). Here is a
chart with a “resistance” trend line. (Note what happened when the
trend line broke. This chart also shows a nice support line for the
down trend.)
You can also have trends inside of trends. Often you will encounter
(i.e. in an up trend) that you’ll have a longer term trend that is
somewhat “flatter”, and then a shorter term trend that is “steeper”.
The shorter steeper trend will eventually end (trend line breaks) and
then it will do another short term trend (in the opposite direction) to
move towards the original trend line.forex sato
As long as the prices keep bouncing off of the trend line you can
keep making money. The standard way traders do this is to buy
when the price hits the support line (or sell when hits resistance line
in a down trend) and to place your stop around where it previously
hit the trend line (this can be a huge stop) then trailing the stop.
Alternatively, you could also exit when prices have moved a
significant distance away from the trend line.
FOREX Surfing Draft
..forex sato
Remember the saying, “a trend is your friend… until it bends”. All
trends will eventually end. A good indication that your trend is
probably ending is when the price significantly penetrates through
your trend line and takes out the previous significant low (up trend) /
high (down trend) that bounced (or came close to) the trend line.
Trend lines are commonly used by traders, and there are some good
resources in the Resources Section that you could read to learn more
about trend lines.forex sato
forex sato