Identifying Trends in Forex Trading
How do you go about identifying trend in Forex Trading besides looking at the charts, drawing lines and perhaps adding indicators on your own?
If you are working a full time job like me or pre-occupied with other tasks leaving not much time to study and monitor your charts, then you will probably need external help in the form of other sources scanning the charts for you and informing you when a chart of pattern is forming.
It’s a challenge since you only have a certain amount of time in a day to do it. And depending on the time frame you are trading and how many pairs you are trying to trade, all these challenges will add up.
Of course there are alternatives such as trading less frequently or sticking to higher time frame such as H4 or Day for your trading where there’s less noise but not necessary less risk from my point of view.
I prefer to get in and out of a trade fast (close in matter of minutes or hours) rather than let it run over days where you don’t know where the market is headed next and could end up with trades that are floating loss or profit but not able to close because there’s no opposing trade to take up your position. I could go on and on about this so I don’t want to side track not go on further about this and save it for another day. Even with my preference for short trades, I still look at the trend before I enter my trades.
Back To Identifying Trends In Forex Trading
Do you know that there are software that can help you in identifying trend in Forex trading?
How do you know when a trend is starting or ending, reliability of the forming or current trend, formation of patterns, in which time frame? All these are potential trading signals depending on which trading strategy you are following for your trades.
There are Forex trending software scanner that helps you scan for trends and patterns across many currency pair in the background for you and alerting you via email and audible alert. You only need to take a look at your charts to verify and decide if you should take a trade after receiving the alert.
Some forex trend scanning software sits on your computer where the disadvantage is you have to keep it on and running all the time even while you are away. Some sit in servers, where you don’t have to install any software and running in the cloud.
Benefits Of Identifying Trends In Forex Trading
If you have been trading for awhile, you should be aware that many are preaching about trading in the trend. The truth is that most Forex trading strategies and EAs in trend trading loses money in a choppy market. I can attest to that because I have traded with and backtested many EAs over the years.
Not all trends are tradeable and if you not picky about which is and which is not, you are in for a rough ride. The reliability of the trend can make the difference between winning and losing and only the best should be traded. In trading, it’s about trading those setups with higher probabilities of winning.
Forex trending scanning software are one of the tools of the trade. It helps you in identifying trends in Forex trading, takes care guesswork, save time and you only need to decide to trade or not to trade when the signal appears.
It is a tool worth investing in and I do recommend that you give some thoughts about this type of software whether you have or don’t have the time to do it yourself.
Check Out This Forex Trend Identifying Software
Good luck and safe trade.