Free Education

Home Education Center Forex Education Free Education Center Effective Technique to Measure the Trend Power in Trading

Effective Technique to Measure the Trend Power in Trading

by Didimax Team

Trend power in trading is essential to be known. In the world of forex, the trend is a popular term. It is both; the positive and negative trends. Every time you enter the market, a trader will surely look for the best moment based on a strategy.

Entry at the right time is the first key to get maximum profit. To know how to enter, the ability to read trends is a mandatory requirement. There are some tricks that are easy to use for novice traders to determine the strength of a market's trend. 

Some of these trend power tricks are quite powerful because they can minimize the loss that is gained when trading. If it is developed, it can become a capable technique, and its accuracy is increasingly recognized.

 

High Low Technique

The high-low technique is a trend forecasting technique based on high and low shifts in forex candlesticks. There are moments of the swing moments existence that can be read in a market lag. These high low charts can be the key to read trend power. 

In a case example, the market today is still in a low trend that continues the trend yesterday. However, just before the market closes there is an increase in demand which causes the market closing price to be higher than yesterday. 

It can indicate that a change in trend is imminent. This trading technique is often referred to as Price Action. You have to be ready in any situation that occurs before using this strategy. One of the preparations is choosing the best forex broker. 

In the forex application, you can find out this condition by looking at the Candlestick. If yesterday's candlestick is red or low, then today's closing is green or high. It means the trend is up. It can be predicted that the trend will soon shift.

Looking at Market Price Frequency Fluctuations

This method can be applied when you have mastered the high-low technique. By looking at market frequency fluctuations, you can predict that the trend power that will soon shift. It can be seen easily by reading the chart contained in your forex application.

When there is a significant fluctuation in price frequency, it can be predicted that market trends will shift from previous trends. At this moment the trend tends to stagnate and does not show an increase. It doesn’t show a decrease in the trend.

You as a trader should be prepared because the swing trend will happen soon. Do not rush into transactions and wait for the buildup of the right moment. You need mature emotion management to read this trend power properly.

Seeing the Time Lapse of the Trend

This technique is quite difficult to apply for beginner forex players. It takes patience and a strong mentality to avoid wrong execution which results in a loss. In a market pattern, there is always a time pattern that you can make a benchmark to determine the swing trend.

The example is a positive moment of GBPUSD for 145 days before experiencing a recess or a period where the exchange rate of the money is at its lowest point and not a minus. After this recess, there is definitely a positive moment again for about 85 days.

When the market trend has started to become unstable or in the sense that the positive moments are getting shorter, then you can conclude that there will soon be a swing moment. Join Didimax forex broker to do all your strategies.

This professional forex broker is the best place to trade every day. It is even for beginner or professional traders. It has quick connectivity and complete features. It will help you to read the trend power better than before.