"The trend is your friend." - You will come across this saying a lot in foreign exchange markets. As a Forex trader in 2019, you have to be extremely meticulous in your approach and have a keen eye on the charts. Opportunities, though plenty, have to be caught properly to make the most out of a trade. The competition is getting stiffer by the day, and traders have to be immensely adept if they want to have a profitable run!
This is what makes catching trends an important aspect of Forex trading in Pakistan. Being an extremely volatile and liquid market, trends are always on the rise. The challenge is to net in ones with healthy strength and momentum, so you can ride them long enough to see good profits.
What's a Trendline?
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| Forex Trading Using Trendlines |
Take a candlestick chart and draw a line through a point, and voila - you have a trendline at your disposal. What makes trendlines a substantial element of every Forex trading strategies are a simple fact that they are used to construct several other technical concepts. Once you start employing trendlines, it becomes a subconscious act after a point of time, allowing you to visually study charts and observe Forex trading movements swiftly.
A simple example would be working with candlesticks, with the sticks all moving downwards like a flight of stairs. When you draw a line between the first candlesticks on top, all the way till the one on the bottom, you can gauge the momentum and also deduce what's obvious - that the market is seeing a downtrend.
With a trendline to work with, you can land profitable trades and avoid letting erratic market movements catch you off-guard. The simple knowledge of a trend's strength and momentum can help you decide if it's going to be profitable, and if you should invest in it.
Why Trendline Trading is Advantageous?
You might wonder at this point, that if a trendline is just a simple line, why to spend so much time reading about it when one can just draw a line across the chart. A point fair enough; but how will you measure the value of a trend when it sees continuous ups and downs? When the Forex trading markets are seeing a mix of uptrend’s and downtrends, that's where a trendline truly helps. You can figure out if you should go long or short, or not trade at all! Likewise, the strength of a trend will show you if it's a valuable investment to make.
Want to get more tips on finding profitable trades while Forex trading in Pakistan? Sign up with WesternFX today! Our seasoned veterans will help you perfect your approach and see increasing profits in no time. Call us today to know more.
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