We may earn commission as an affiliate from qualifying purchase made through any of the link in this post thank you so much.
How to know when trend is not your friend? In this article, I’ll elaborate; after all, you’ve probably heard that trends are your friends. But no one ever tells you when the trend is always your friend!
How to know when trend is not your friend?
I’ll answer this right away: the trend has more juice than regular trading; if you choose to ride a trend, it’s because the trend has more pips and profit to catch simply by riding it to the top or bottom!Well, when you hear about the trend, You’re always convinced that things are going in the right direction.
We have an uptrend that is when the buyers are in position or the buyers are in power and there are probably no sellers or we have a few sellers in the market at that time.
A downtrend is when we have more sellers in control of the market and we probably have few or no buyers at all. Now that you know some basic truths about trends, get ready to start making cool cash with forex trading! Smile! Well, back to why we are here!
How to know when a trend is not your friend? To discover when the trend will not welcome you as a forex trader, whether you are a new or professional trader, is this! When the trend is approaching a certain key level, believe me, it is no longer your friend.
You have to exit the trade and go with your profits. Failure to do so will affect you later because it will certainly reverse on getting to a defined key level.
How to identify a trend?
What I mean is that if a trend hits a support or resistance level and cannot break through, then when the trend picks a new direction, you simply ride it. That is it, and that is how to identify a trend.
How to know when a trend is ending?
Well, this is a likely question that many traders do ask. To know when the trend is ending is very simple. All you need to check out for is the possibility of the trend approaching a well defined key level.
If you discover the trend coming close to a key level, the probability of the trend ending is equal to 98% Yes, that is how to determine if a trend will end or not, and remember to always stick to these simple rules.
What time is favorable to ride a trend?
Well, let me give you an idea! The favorable time to ride a trend is quite simple. To start riding a trend at the right time is by waiting patiently for the trend to hit a defined key level and reverse, and immediately after the trend reverses, going in straight in the trend direction.
We also have in mind to introduce the proper use of stop levels, and to be honest with you, some trends can go up to a reasonable 400 to 500 pips in a single ride!
Yes, you heard me right! We have in the industry today lots and lots of traders who only trade the trend and nothing else. Well, you can as well try it! There is no harm in trying at all.
What do I do if the trend reverses at me?
Yes, this is probably one of the best questions I would like newbies or beginners to ask! If a trend reverses back after all the precautions you followed, no problem at all. All you need to do is always introduce the use of stop-loss in any of your trading steps.
Stop loss can help you cut the loss on time, and stop-loss is what professional traders are using to cut losses in no time, so if you want to be successful in trading forex, you will definitely use stop loss.
Steps to trend following
We at joebenz.com would like to share some steps when you are following or riding a trend! The first thing you need to do is apply the use of trailing stop loss. What is trailing stop loss? This will be another article, so make sure you don’t miss it.
Well, the trailing stop loss will help you to luck in your profit as the trend proceeds up or down, so if the trend eventually reverses and hits your trailing stop, you will still be in the money. If you know how important the trailing stop is, you will always use it while riding a trend.
Is it true I can make money riding trend?
Yes, it is entirely possible to make a good living simply by riding a trend!We here at joebenz.com have proven that already! I have a YouTube that you will probably want to watch, so I would like to go and subscribe and hit that bell notification icon so you never miss any of my future videos again.
As you think of making money by following or riding a trend, you could also lose lots of money if your calculation is wrong! I have lots of videos on my channel you probably don’t want to miss.
Dictating when a trend is not your friend is easy. Remember what I said earlier that when a trend will no longer be your friend is when the trend is approaching defined key levels. Well, if you notice as a trader a trend is approaching a defined key level, do not enter any trade at that time!
I do consider the strength of the trend also, many traders over those simple steps to follow. Nonetheless, those steps will swipe away a lot of tears from you. Remember to keep it simple, and I just hope this article will go a long way in your life!
If you want to get more value from me about forex in videos, strategies, and indicators, subscribe to my YouTube channel: Joseph Benson If you have any comments, please drop them in the comment section below. Thank you so much. I hope to see you next article. Bye-bye, with much love from Joseph Benson.
Updated on 29/10/2022
Read more articles: Download Forex Profit Supreme
Other related articles
- How To Invest In Forex Trading In Nigeria (Beginners Guide)
- Joe So Easy v1.0 Forex Indicator (Honest Review)
- How are FX Swap Points Calculated (Complete Guide)
- Can You Trade Forex in Singapore (All You Need to Know)
- Forex Trading Basics Rules (No One is Talking About)
- Download Forex Profit Supreme (How to Trade with It)