As you have learned in the previous articles in the learnpakistan.com that Forex market operates 24 hours a days. This is the beauty of Forex market that a person can earn anytime he/she wishes too.
What is a trend?
Trend is the direction of price movement in the Forex market. Trend is the prevailing factor when it starts. Trend is your friend and trend prevails until overbought or oversold. A trend can be recognized by sketching a line joining two successive highs or two successive lows. This is called a trend line. A third high or low that confirms the trend line tells us that this trend line is a valid line of support or resistance.
What is UpTrend?
An uptrend can be identified when price come to a certain high, then down and again up by breaking previous high, it can be identified as sign wave like zig zag in upward direction.
What is the DownTreand?
A downtrend can be identified when price comes to a certain low, then up and again down by breaking previous low, it can be identified as sign wave like zig zag in upward direction.
How to Follow the Trends?
- Open 4H (four hour Chart)
- Identify the trend (It can be uptrend or downtrend)
- In case of Uptrend
Now open a lesser time frame like 5MIN or 15MIN When RSI is below 30 BUY, Take profit at RSI Level 60, wait for RSI to come again to below 30 then BUY, Take profit and repeat this process.
- In Case of DownTrend
Now open a lesser time frame like 5MIN or 15 MIN, When RSI is above 80 SELL, Take Profit at RSI level 60, what for RSI to retrace at 80 then sell again, Take profit and repeat this process.
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