Hey Purpose Trader,
Trading with the trend has been the recommended go to for decades of trading. Could it be because there is truth to the actionable statement? I think there is.
Let's take NZDUSD here. You nor I know what can happen next, but you and may be able to agree on 1 thing. This currency pair is trending down.
What does "trending down" mean?
Trending means following and down of course means decrease. When we relate the term to the forex market it means that price is dropping.
The last highest price from where the last decrease came from was around 0.58136. Price then decreased to 0.55123 passing the last lowest price of 0.55658.
And there you have it! The trend!
You know whats cool about this, it didn't take structure to see that. It just took 3 price note tools on the daily timeframe and viola! You have price direction!
This makes me interested in the next move this pair can make.
If today, price closes bearish, it could give me hope that we may see a new Lower low in the future. This will give a favorable risk to reward so I'm going to roll with it.
And just like that we have easy peasy trend trading analysis.
I'd love to know if you agree, have a question, can add value, or if you see something different. Let's chat in the comment section below.
If you liked the analysis share the post. 😍
Happy trading.
Trading with the trend has been the recommended go to for decades of trading. Could it be because there is truth to the actionable statement? I think there is.
Let's take NZDUSD here. You nor I know what can happen next, but you and may be able to agree on 1 thing. This currency pair is trending down.
What does "trending down" mean?
Trending means following and down of course means decrease. When we relate the term to the forex market it means that price is dropping.
The last highest price from where the last decrease came from was around 0.58136. Price then decreased to 0.55123 passing the last lowest price of 0.55658.
And there you have it! The trend!
You know whats cool about this, it didn't take structure to see that. It just took 3 price note tools on the daily timeframe and viola! You have price direction!
This makes me interested in the next move this pair can make.
If today, price closes bearish, it could give me hope that we may see a new Lower low in the future. This will give a favorable risk to reward so I'm going to roll with it.
And just like that we have easy peasy trend trading analysis.
I'd love to know if you agree, have a question, can add value, or if you see something different. Let's chat in the comment section below.
If you liked the analysis share the post. 😍
Happy trading.
