Don’t waste your time – keep track of how NFP affects the US dollar!

Data Collection Notice

We maintain a record of your data to run this website. By clicking the button, you agree to our Privacy Policy.

facebook logo with graphic

Join Us on Facebook

Stay on top of company updates, trading news, and so much more!

Thanks, I already follow your page!
forex book graphic

Beginner Forex Book

Your ultimate guide through the world of trading.

Get Forex Book

Check Your Inbox!

In our email, you will find the Forex 101 book. Just tap the button to get it!

FBS Mobile Personal Area

market's logo FREE - On the App Store

Get

Risk warning: ᏟᖴᎠs are complex instruments and come with a high risk of losing money rapidly due to leverage.

72.12% of retail investor accounts lose money when trading ᏟᖴᎠs with this provider.

You should consider whether you understand how ᏟᖴᎠs work and whether you can afford to take the high risk of losing your money.

Trend

Information is not investment advice

One of the assumptions of technical analysis is that the price moves in trends. Let’s find out more about these trends.

A trend is the general direction of the price of an asset on the market. If you look at a chart of any financial instrument, you will see that prices never move in straight lines, they are constituted of a series of highs and lows. More often than not a price has an upward or downward bias.

Types of trend

There are three types of trends:

  • Uptrend (bullish trend) consists of a series of higher highs and higher lows (prices are moving up). One may speak about an uptrend if there is a clear support line, connecting at least two lows and limiting the downside. A break below this line signals trend's weakness or reversal.

1.png

  • Downtrend (bearish trend) is classified as a series of lower lows and lower highs (prices are moving down). A downtrend can be defined if there is a clear resistance line, connecting at least two highs and limiting the upside. A break below this line signals trend's weakness or reversal.

2.png

  • Sideways (flat, horizontal) trend – there is no well-defined trend in either direction.

3.png

In terms of length, trends can be classified as:

  • Long-term (6 months – 2.5 years) – a major trend which can be traced on a weekly or monthly charts. It is composed of several medium-term and short-term trends, which often move against the direction of the major trend.
  • Medium-term (1 week – a couple of months) is better seen on the daily and H4 charts.
  • Short-term (less than a week) is better seen on hourly and minute charts.

Every trend consists of movements in the direction of this trend which are intermitted by counter-trend moves called “retracements” or “corrections”. A trend is expected to continue until a reversal takes place and the direction of a trend changes.

Trendline

A favorite saying of traders is “A trend is your friend”. The idea behind this phrase is that traders can make good profits by following a trend, i.e. trading in the direction of a trend (buying during an uptrend and selling during a downtrend).

In order to determine which trend is there at the market, traders draw trendlines and use technical indicators.

A trendline is a line drawn through pivot highs or pivot lows of the price chart to show the prevailing direction of price. As such line connects the already formed peaks and troughs of the price, it can be continued (projected) to the right of the current price. It’s assumed that this line will be an obstacle for the price in the future.

4.png

On the picture above you can see the trendline drawn through a price’s low and a higher low in an uptrend. The price respected the trendline for some time continuing moving within a rising trend. Then it broke below the trendline. This was a sign that the uptrend finished and the market reversed down. Those traders who opened buy trades during the uptrend closed their positions and opened sell trades.

Forex trends and trade ideas

Popular

Will the CPI Crash the USD?

 The most impactful releases of this week will fill the market with volatility and sharp movements.

Crypto Market Changes The Trend

Happy Tuesday, dear traders! Here’s what we follow: 

The US Labor Market And Real Estate Market Are In Focus This Week

Labor Market and Real Estate Market data was published yesterday. Markets are slowing down, so the economy is in recession. Today the traders should pay attention to the Retail sales in Canada.

Choose your payment system

Feel the Team Spirit

Callback

Please fill in the form below so we can contact you

Select the best time for us to call you. We give calls from Monday to Friday in suggested intervals. In case we couldn't get through, we will try again at the same time the next day. For getting real-time assistance, use FBS chat.

We provide only English-speaking callbacks. If you prefer any other languages, contact the support team.

We will call you at the time interval that you chose

Change number

Your request is accepted.

We will call you at the time interval that you chose

Next callback request for this phone number will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later