HOW TO IDENTIFY MARKET TREND

IDENTIFYING A TRENDING MARKET

Identifying the trend of a market is one of the most important technical skills. Identifying the trend of a market entails ability to decipher the direction of a market. The markets can either be trending upwards or tending downwards. Trading with the trend is one of the safest trading techniques. And it is as simple as looking for short opportunities when a market is trending downwards and looking for long opportunities when a market is trending upwards.

A market trending upwards is normally characterized by formation of series of higher highs and higher lows

A market trending downwards is normally characterized by formation of series of lower highs and lower lows.

Also markets can have a strong uptrend or a weak uptrend and also a strong downtrend or a weak downtrend. Ordinarily one can stare at a chart and tell if the market is trending upwards or downwards but one of the easiest methods of identifying a market trend and its intensity is the use of Moving Average indicator (MA).

All you need to do is activate your MA.
Note: Normally I use three different lengths of MA for this
*MA 20(Blue) - for short term trend
*MA 100(Gold) - for medium term trend
*MA 200(Black) - for long term trend

With the use of MA, the job is made very easy all you need to do is look at the direction to which the MA is pointing and that's is the direction of the trend.

If the MA points towards 2'oclock or beyond, it's a strong uptrend. If the MA points towards 4'oclock or beyond, it's a strong downtrend.

One of the most important rules in Fx is never to trade against the trend🙅‍♂ The trend is your friend📉