It is essential to know the market trend to trade like a professional trader. Today, my article highlights some tips to identify Bullish Forex market trend in advance to ultimately achieve success in your trading career.
AtoZForex – One of the best ways to make profits in the Forex market is to place orders in the direction of where the big traders are headed. Hence, the slogan for the pro traders in all markets is: “the trend is the trader’s friend except at the end where it bends”. It is obvious that the overall knowledge of the Forex market trend is important to successful trading.
If you do not identify the trend or misinterprets the trend, then you could be trading against the momentum. However, this can put your funds or investments at risk and ultimately lose the trade. Most of the professional traders conduct market research and stop with the size of their market. Moreover, they analyze how many people are interested in what they have to sell. It is vital to understand the market size, but you should also know whether the market is trending up or down. Hence, to identify bullish Forex market trend in advance is important for strategic and marketing decision making.
How to identify Bullish Forex market trend in advance?
In order to identify bullish Forex market trend in advance, it is better to understand what the market is doing. A higher time frame chart like a daily chart can give you a broader idea. However, shorter term charts are used for selecting Forex trade entry and exit points. This should be used in the context of the trend on the long-term charts. There are mainly uptrends and downtrends.
An upward trend can be seen when the price action is making a sequence of higher highs (HH) and higher lows (HL). On the other hand, a downtrend is seen when the price gets to lower highs (LH) and lower lows (LL). Today, we will talk mainly about the uptrend in Forex market. When the market is seen trending in the upward direction, we call it a “Bullish” market. The reason behind this term is that the traders who buy or go long are known as “bulls”. Therefore, when an uptrend is seen we know that the bulls are in control. A Forex uptrend occurs when the currency trading price is on an upward rise.
Uptrend Forex market trading strategy
The very first thing you need to know is to determine the general direction of the currency price. Additionally, you will have to make use of various trading tools in order to recognize the right uptrend. However, trading tools can include various trading charts that mainly comprise of hourly and daily charts. Like this, you will have a bigger view to know the current market direction when trading in Forex market.
Secondly, we discussed earlier that the best way to make profits in the Forex market is to place orders in the direction of where the big traders are headed. In other words, you need to know that the best time to invest in is when an uptrend is on its way.
You should also make sure to place an entry order while an uptrend is on its way right after a long and considerable downtrend. This way, the currency will have a long way up the chart. Moreover, it usually means the currency will regain its former price and even surpass it. Another option is to follow the uptrend until it finishes and then sell the currency pair just as it begins to drop.
Think we missed something? Let us know in the comments section below.