Forex Trends: What a Novice Trader Should Know

What is the trend? Sharefounders broker explains: when talking about the forex market, this is the trend in price movement of a chosen currency pair. But taken solely, the concept of a trend is abstract: it obtains the meaning when it becomes clear, which particular trend is under discussion. There are two groups for trend classification: by time, by direction, and the additional characteristic is the trend strength. The experts in Share founders broker company provide a detailed typology of trends.

What is the direction of the trend

Many of you have probably seen a famous statue on Wall Street in New York: the fighting bull and bear, a bull is trying to raise a bear by the horns, and a bear is trying to press the bull to the ground. These two animals symbolize the movements of the price trend on any stock exchange or market, including forex, Sharefounders forex confirms this. A bull symbolizes a rising price, and a bear symbolizes a falling one. The monument is closely related to the popular stock exchange terminology: “bulls” are the traders who try to raise the price, and “bears” are the traders who play to lower the price.

Correspondingly, when the price of a chosen asset - for example, a currency pair - goes up, this is called the uprising trend, uptrend, or bullish trend. And when it moves down, this is a bearish trend, or downtrend, or decreasing trend. If the price remains unchanged for a certain period of time or makes the chaotic jumps up and down around a certain level, Sharefounders broker calls this a flat trend. 

 

 

 

How trends vary by the strength

The change of the asset price can occur in different ways. After the release of the unexpected news, the price fluctuations can be very sharp. According to Share founders forex, feedback and reaction to the reports depend on the coincidence of the story with expectations. When the information meets the market expectations, the price can change smoothly. The strength and direction of the trend do not depend on each other: for example, an uptrend can be stable and robust, or weak and uncertain. But the trend remains upward. Of course, for forecasting and planning, it is convenient to focus on a strong trend, according to the experts of the Sharefounders broker.

The Stages of a Forex Trend

A trend is, essentially, a tendency for prices to shift in a particular direction over a period of time. Trends can be long-term, short-term, upward, downward and even sideways. Investor’s success with foreign exchange market investments is closely related to his ability to see trends and choose a good position for profitable entry and exit points, otherwise one can fail and blame Sharefounders broker scam. Here we will examine stages of a forex trend and their effect upon investors.

Currency reflected economic trends.

A strong economy would usually have a strong currency as well. If the state is strong in economy, it will attract investments, as the Sharefounders broker reviews confirm, which will in turn create a demand for currency. Alternatively, if a country produces gold (like South Africa, Canada, or Australia), It can also create a strong currency demand as an alternative to fiat currencies. 

Traders from the Share founder broker use to say that “the trend is your friend”, or so does conventional wisdom say; this advice is quite good, but is actually incomplete. The full version would look like this: “ The trend is your friend… until it ends”.

Trends Vs. Ranges

It is actually quite hard to say whether a trend exists at all, or is it all just a sideways-trading range, as well as where does the trend starts and where it will inevitably end.

We at Sharefounders broker first look at the question of where a trend could start and, once started, where to take part in the action. To answer these questions, we need technical analysis. To keep our analysis as simple as possible, we create a chart that uses a weekly time frame and uses only two indicators.

The first indicator is a simple 20-period moving average calculated on the closing prices. However, to add a cushion, we also add an additional 20-period simple moving average, but this time calculated on the price highs. Then, we add another 20-period simple moving average calculated on the price lows. The result is a moving average channel that reflects a dynamic price equilibrium for the Sharefounders forex.

Also notice that when a market trends in either direction, Share founders forex believes that there is a tendency for prices to move away from the channel and to return to the channel as volatility increases and decreases, respectively. With volatility, prices always tend to revert to the mean over a period. This reversion to the mean provides either buying or selling opportunities depending on the direction of the trend. Knowing this is essential for fully appreciating benefits from Sharefounders broker scam protection.

In addition to the moving averages, we also add an RSI set to a two-period, instead of the usual 14-period, with the plot guides set to 90 and 10 instead of the usual 70 and 30.

Many traders will look to trade reversals. Sharefounders broker reviews state that a reversal point is always where a trend starts or ends.

Some trends are stronger than others, and Share founders broker knows how to make use of that. In fact, some trends become so exuberant that prices form a j-shaped or parabolic curve.

Stages of a Trend

A reader familiar with the Elliot Wave will observe that trending markets move in a five-step impulsive wave followed by a three-step ABC correction. Many investors like the Share founders forex prefer to count pivots, and they look for between 7 and 11 advancing pivots, particularly noting the pivot count as the price reaches a strong resistance level.

It's impossible to predict the future, but we can calculate the potential success of a trade by stacking various factors in an effort to tilt the odds in our favor, which should be done in order to feel the effect of Sharefounders broker scam protection. Since all speculation is based on odds, not certainties, we should be mindful of risk and employ methods to manage the risk.

When placing a trade, it is essential to always place stops to limit losses in case the trade does not go as expected. Major market makers like the Sharefounders forex know where all the stops are and could, in certain circumstances (particularly in times of low liquidity) reach for the stops. Thus, an investor's stops should be in a place where there is enough room to prevent them from being taken out prematurely.

To best manage a stop policy in trending markets, brokers like Share founders forex use "volatility stops." The well-known Parabolic SAR indicator can also be used to trail the market and take profits once the stop is hit. In the chart below (Figure 5), the 50-period three ATR trailing volatility stops trail prices and provides exit points if the trend suddenly reverses.

 

The Bottom Line

It is best to trade with the trend but to be alert as to when a trend is exhausted and a correction or reversal is in order. If that is ignored, you may find yourself believing in a Sharefounders broker scam, which is wrong. By observing and listening to market sentiment, following news announcements and using technical analysis to help time entries and exits, you should be able to develop your own personal rule-based system that is both profitable and simple to execute. .

Differences in trends over time

The duration of the trend is one of the key characteristics for a trader in the forex, Sharefounders checked this fact on the personal experience. Opening a position, the trader takes in mind a specific forecast regarding the trend movement at a particular time. For example, the size of the deal depends on this forecast.

Forex trends are short-term, medium-term, and long-term. Short-term trends exist within one trading day. Trading on short-term trends is the must-try for the novice traders, who want to make a quick profit without paying an overnight commission fee. Share founders broker offers favorable trading conditions, including an overnight.

You have probably heard about the scalpers - traders who open super-short positions chasing the short-term trends. The length of such a position is very small as if it is cut with a scalpel. This explains the origin of the name. The scalping can bring quick profit, but it also has many disadvantages. For example, the profits from scalping may not overlap spreads. Besides, many brokers prohibit scalping. It is easy to lose control of the emotions, lose a deposit, and then make claims saying Sharefounders scammers.

The medium-term trends last from one day to a month. They are the most appreciated by experienced traders who trade according to the plan. The fact is that medium-term trends can be perfectly predicted. In some cases, when the vital information appears, and the trend reverses sharply, the traders set the stop-loss levels. This helps to secure the trader’s funds, prevent disappointment and accusations against the broker that Sharefounders scam.

The long-term trends last from a few months to a year. Such trends appear under the influence of deep fundamental factors. For example, the current long-term downtrend of the US dollar is the result of overheating in the US economy, according to Sharefounders. Reviews show that the US economy has been growing for 11 years in a row. It is enough to complete the small economic cycle and to start the recession. But to navigate in long-term trends, the trader must have fundamental knowledge in the economy and carefully monitor the changes. For most traders in the forex market, there is no sense to focus on long-term trends, but you should not ignore them.

What is trading along with the trend and against the trend

Trading along the trend is based on the assumption that the trend will continue for some time. A trader opens a position in the same direction where the trend is moving. Then the position is closed automatically, at a preset take profit level, or the trader closes it manually. Taking profits in manual mode, the trader must closely monitor the market to avoid missing the moment. To feel this moment better, read the Sharefounders broker reviews.

Trading against the trend is based on the assumption that the trend can reverse at any moment. The longer the trend stays unchanged, the more positions open against the trend. Closing a position after a trend reversal, a trader can make a significant profit. But in general, the trading against the trend is considered riskier than trading along with the trend. Entering a market against the trend is recommended only to experienced traders. If a trend does not reverse, many traders cannot resist the temptation and increase the size of the deposit - after all, a trend reversal is about to happen, and the position will close with a significant profit. This is a direct path to deposit loss and heated discussion on the forum that Sharefounders scammers.

We do not persuade you to trade without risk. Any highly profitable market - like the forex market - is always associated with certain risks. But any threat should be well-thought and calculated, so even when you close a deal without profit, you should have a way to compensate for the loss. Read Sharefounders broker reviews to learn more.



Comments ()

person Connor W. 03.02.2020
Hi, everyone! Yeah, I worked with ShareFounders for several weeks and can say that they are average as fa as brokers go. Some good possibilities are present, though.

person Mason As. 06.02.2020
I’m a beginner trader, looking to get some experience in the forex field. Going to try ShareFounders, hope that they are as good as people say.

person Michael Y. 11.02.2020
One thing can be said on account of ShareFounders – they surely can advertise themselves. After reading some info on them I think I will give them a try.

person William Q. 17.02.2020
Got contacted earlier by some guy from ShareFounders, apparently – and suddenly I’m a forex broker, lol. Wasn’t interested before, but this dude really changed my mind about this stuff.

person Joe Par. 25.02.2020
I’m still expecting my first withdrawal from ShareFounders, gotta be a pretty penny. Wish this withdrawal time was shorter though.

person George Mik1987 29.02.2020
I’ve just tripled my profits working with ShareFounders! YAAAAAAY! Gotta keep rolling!

person Gustman A. 04.03.2020
Sharefounders PLEASE step up your support routine, I’m like beggin you. I was all like “yeah lets do it” and then was essentially put on hold for HALF A DAY. I understand you guys must be busy but I’m a client too you know and I demand attention. I mean, come on, it’s like you don't need my money or positive broker reviews.

person Blare N. 10.03.2020
Got myself into trading recently, thought about Sharefounders. Didn’t check broker reviews on them, I was just looking for a nice platform anyway; cannot say that i was disappointed, but wasn't feeling too hot about them either. Support is so-so, terms are average, their tendency to stick to just the Metatrader is meeeh. If you ask me if I would recommend them... Well, you can give them a go.

person Calhoun Evan 16.03.2020
Sharefounders are interesting, but I’m a bit confused after the call from them, I mean are they trading only shares or how does that work anyway?

person Pearcy I. 24.03.2020
Never heard of Sharefounders before they contacted me earlier today. Trading seems interesting but I’m still not sure who want to take a risk knowing nothing like me.

person Nicholas Donovan 02.04.2020
After I've read a couple of broker reviews, I’ve made a decision to try Sharefounders trading. Feeling mostly satisfied now, but I would really love a bit faster support responses — time is a resource and I dont want to waste it waiting for a reply.

person Doran Warner 11.04.2020
I always had the opinion that as a sane individual you have to manage your finances by yourself and that includes all the investments you might make, but that fellow from Sharefounders had convinced me that a good broker might actually be more healthy for my finances especially since I have no time to educate myself in trading. Was making some really valid points.

person Eden Cox 15.04.2020
Entering the trading world without ANY understanding of basic economy is extremely shortsighted and naive. You would just lose your money, guys, better stick to professionals. Sharefounders might be interesting if you're looking for something simple.

person Beringar Kunze 19.04.2020
Sharefounders all the way! Wow, I don't know how do they make it, but it seems that they've just made me really rich. Awesome.

person Willard Hewitt 23.04.2020
Professional trading becomes so popular right now that I begin to wonder if I should join myself. I've heard that Sharefounders got nice options, what do you think guys? Are they legit?

person Hope Kim 27.04.2020
Sharefounders? I'm surprised and a bit annoyed we still have discussions about them at this point. Come on, these guys has been analysed through and through a long time ago, they are decent, nothing has changed, why are we having this conversation again

person Alexander 03.05.2020
been trading for about 7 years and self taught never took a course. But I ve trippled my original investment. Want to try Sharefounders be my guest they re paying at least.

person Caleb 12.05.2020
Just when I’m not too greedy, I can make money almost every day. Awesome.

person Hendrix Cabrera 14.05.2020
Market is in total disarray right now, that's for sure. Sometimes I just wanna lay down on the floor and forget about trading after I have not seen any good moves for hours. gotta get myself a new broker, checking Sharefounders right now. Anyone had any experience with em?

person Ellesse Fulton 17.05.2020
Everytime I think my job is too risky (I'm industrial climber myself) I just take a look at one of them brokers out there and instantly feel relief. I've no idea how all of you manage to stay on the market.

person Cherish Roach 20.05.2020
Yeah, I've had some experience with Sharefounders. Can't say that I know them inside out but have enough time spent to know some of the entrails. And beleive me there are a lot of companies that will make much more efforts to make you trade harder. I just enjoy my own rythm

person Kason Martin 24.05.2020
Sharefounders? Whatever. I'd bet they are just as average as your next broker, though I didn't do business with them.

person Alana Blake 27.05.2020
By the way, if we talk about the «okay» broker cathegory, you gotta mention Sharefounders: I've checked these dudes recently and they seem fine. Not going to invest fortunes in them (not before I get one anyway lol) but they are no worse than others.

person B. 29.05.2020
Joined two months ago, made a payment on May 12th. I was so afraid at start so I can barely touch the buttons I swear. But it’s not that bad after several orders and it’s way more interesting than trading on demo!

person Louis 02.06.2020
I spent three weeks staring at the monitor and got nothing, then I made almost $200 in one week. It's like meeting the T-rex at your backyard but I really think that it's not broker cons or pros, it's just what happens when you keep on trying and don't stop until you make it

person Rhyley Ramsey 07.06.2020
Why is everyone so loud about Sharefounders anyway? I haven’t heard about them before and to me all this seems just fine. Can you guys tell me what all this is about? Are they some star brokers or something?

person Enrico Wilkinson 18.06.2020
Hey, fellas! Just wanted to ask, is it a good idea at all, trying become a trader right now?.. I mean, it seems hard enough from the outside and I can only imagine what stress will fall upon me as soon as I go in and invest some real money. another thing – brokers, what would you advise to look for when choosing one? I’m currently thinking about Sharefounders.

person Shahzaib Espinoza 21.06.2020
Still waiting to see what results will my work with Sharefounders bring in the end. I’m full of hopes for the time being but also very worried.

person Karter Cresswell 26.06.2020
If you are considering your option on the trading market, you cannot let Sharefounders slip past your focus: those guys are pretty strong right now and cooperation with them can help you trading career just like it helped mine.

person Bertram Spence 29.06.2020
The trading situation right now is not ideal to say the least. It would be extremely unwise to join the market without doing the necessary amount of research and choosing a good broker. I’m looking at Sharefounders myself, though there aint much information about them going around.

person Carl Leonel 09.07.2020
Was a bit worried about Sharefounders withdrawal timing but finally received my profits after a day or so. NICCCCCCCE!

person Henry T. 16.07.2020
Havent tried Sharefounders yet, but I really love how their customer care works — it’s like these guys try to help you even bit too much lol. Appreciate it, really.

person Oliver N. 22.07.2020
Listen, guys, does anyone know anything about ShareFounders? I’ve heard they are kinda interesting for those looking to enter the forex market, but nothing specific. Care to elaborate?

person Christopher 31.07.2020
What can I say, this is a classical good broker in a nutshell. They've got all the necessary qualities and they work hard on repairing every flaw they might discover throughout their operations. Would definitely recommend them.

person French 02.08.2020
An excellent broker, I'm glad to see that they have improved a lot since I saw them first. Right now I'm working with another broker, but this company looks really interesting and I might consider switching soon.

person Peter Hopkins 06.08.2020
There's nothing better than getting your good profits from a long and stressful trading day... this broker is the company that can ensure it and make your trading much less stressful. They did wonders to me.

person Milo 11.08.2020
I dont often make in-depth researches of broker companies, but this one has managed to attract my interest, so I've spent some time on it. To make the long story short - they are good. Their terms are fairly above average on the market and their success rate is higher than their competitors manage to get.

person Miles Hamilton 14.08.2020
I do really like the way these guys operate in dangerous situations. It's like they have some ability to calculate the risks perfectly and act in a confident way amidst total chaos. Such qualities are rare indeed, so I don't think I'll be looking for another broker anytime soon.

person Mervin O. 18.08.2020
Wow, the market is so rough right now, I'm beginning to think about all those global crisis warnings that circulate around. Good thing this broker is very stable, I would hate losing my investments.

person Joshua 30.08.2020
It doesn't really matter how you prefer to estimate the success when it come to brokers, this one would still be on top of any chart. I love working with them and can surely recommend them to all of you.

person Carl Johnson 02.09.2020
Its true that this broker doesn't have a lot of strong sides to it, but the point you guys are missing is that they have all the things that matter. Extremely helpful account managers, good terms of cooperation for beginners and experienced traders, they have it all.

person William 05.09.2020
Me with my friends (who are traders as well) were spending yesterday's afternoon discussing various broker companies we've worked with over our careers; it looks like this company here actually got the upper hand in our combined opinion. No, really, these guys are cool.

person Alfonso 10.09.2020
If we are talking about the "decent" category, I feel myself obliged to mention that this broker fits this category very vell. They have very strong qualities overall, from support service to account management and market analysis professional team, so they might even be in the top quarter of this bunch.

person Benjamin 15.09.2020
I had a very long absence period in my trading careeer recently and have just decided to turn back... still looking for a decent enough broker and this company got my attention. I'm not a pro researcher, but things I've learned about these guys have provoked a lot of interest in me, so I'm currently thinking of giving them a try.

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