One law that was agreed upon by the majority of forex trader is, "BUY only when the Trend UP and SELL only when the Trend is DOWN." But how to determine Market Trends UP or Down?
What is the Trend in the Market ??
is the TREND of the MARKET is the tendency of market price movement on a span of a certain period. Trending Market is where prices generally move in one direction. Bull market trend moving upward, while the bear market trend heading downward. So when we get in at the beginning of the trend and let out the trend, we get the point very much.
Here is a simple way to determine Market Trends UP or Down :
We simply viewed the opening of the market, if the opening of the market today was higher than market opening yesterday, then the trend is UP. If the opening of the market today is lower than the market opening day yesterday, then the trend is Down. For the beginner enough know it used to be, although there are times when opening today is lower than the opening day yesterday, but the trends are still UP.
How do I know the mMrket Trend has changed ??
Trend UP turns into a trend Down as prices could now penetrate the lowest price of the day yesterday, and the Down Trend changed to Trend UP if prices now penetrate the highest price yesterday. For beginners is quite aware of this in the past, although sometimes the price has yet to penetrate the high of yesterday but the trend can already be said to change from being UP, Down and vice versa.
Then how do I OP after knowing the Trend Market ??
Whether direct execution when opening the market. ..??
It is not. We are just hunting BUY position only if the trend is UP, and the hunting position SELL only when the trend is Down. Open fixed position using the indicators, can be MA, MACD, RSI, Stochastic, etc.
Does the OP should not SELL when the Trend is UP, or the CO-OP BUY time Trend Down ??
May-okay, maybe later after starting can analyze, you can sell when the OP Up trend, and OP Buy when the Down Trend, for example in the event of a correction.
But if you don't really understand about the habits of market, better avoid OP against the TREND of the MARKET.
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