20 November 2009

How to identify trends?

With the introduction of trading in the online Forex currency market your main goal should be to enter the position at the beginning of a trend and leave it after its completion. Of course, only some traders achieve this goal, and you do not necessarily strive for the ideal. Suffice it to guess the middle of the trend.

The most common way to identify new trends - the use of crossovers. These are the most well-known technical indicators, such as convergence / divergence of the moving average and moving average.

Eg., Convergence / divergence of the moving average often signals the beginning of a new trend, as the emergence of short-term moving average, as the intersection of the exponential moving average (5) and the exponential moving average (20).

You can also use indicator supertrend and the average directional movement index. Supertrend was specifically designed to signal the beginning of a trend. Index average directional movement - is a powerful indicator, because whenever he crossed the 17 and 23 level, this means that the trend towards.

All of these indicators can bring you profit, especially when considered in combination. More hours a frame you use, the better indicators.

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