Trend Forex

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BASIC CONCEPT OF TREND

There are three kind of trend in stock,forex or index :
- Up trend
- Down trend
- Sideways

UP TREND

Basic concept of up trend is HIGHER BOTTOM , see picture below




As you can see there is a higher bottom occured so we can call this up trend
pattern.

DOWN TREND

Basic concept of down trend is LOWER TOP , see picture below


You can see there is lower top occured so we can call this down trend pattern

SIDEWAYS

Sideways or flat pattern occured when price only move in a range of band ,in other
word price is in consolidation phase , for some trader this phase has critical
situation because it can trigger the trend , in this phase you did not know where the
price will go , yes in this phase better for you just sit and watch which range has
broken , see picture below

Top
Top
Bottom
Bottom

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If below range border was break then down trend will take a part and vice versa


NOTE :
Ussually Sideways pattern only occured in one time frame not the others time
frame , you can see sideways in 1H time frame but ussually it did not happen in 4H
time frame


TREND CHANGING

Trend changing signal can be happened if top or bottom was break !











Top was break !
Next ?? maybe uptrend
Bottom was break !
Next ?? maybe downtrend

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A lower then B,Next ?? usually uptrend
A
B
A higher then B , Next ?? usually downtrend
A
B

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ENTRY POINT AND STOP LOSS


- Determine the major trend from daily or 4H chart
- Look at 30 M or 1H chart and determine the trend on that time frame
(minor trend)
- If major trend is up then look at minor trend and wait for bottom happened
- BUY when bottom of minor trend happened
- Place your Stop Loss at bottom of major trend , if SL too big you can place
it at bottom of minor trend
- Exit according to your target or if you feel it’s enough






Forex Indicators Collection for MT4 can be found here :

http://forex-indicators.freefxsystem.com



Safe Trading !

Prasxz
Copyright December 2007

PS: I’m forex trader with experience more than 2 years and still developing my
own forex system based on zig zag indicator.
30M/1H Up trend pattern , take BUY position with Stop Loss at bottom
4H (A)
B
C
A Stop Loss
BUY !
4H Uptrend
Bottom 4H A