Probably all traders is familiar with the terms trend, however how many is really paying attention to this important indicators of the market movement. Especially the beginner traders who are so focus of finding their own trading system and strategies are most unaware with the significance of trend in forex. Therefore In this blog I just try to provide a reminder about the importance of trend.
In his book title "The Technical Analysis of the Financial Markets" John J. Murphy explained that a trend in motion will continue in the same direction until it reverses – therefore one should ride on existing trend until it shows a signs of reversing. This is very simple explanation in general about trend which you can see on your daily trading chart. When trend moves it will keep moving until it stops somewhere and look for new level to break or otherwise reverse. At the point of breaking new level or reverse it is call support and resistant fluctuation area where the market moves up and down before making continuation.
Follow the guidance of John J. Murphy on "John Murphy's Ten Laws of Technical Trading" HERE
The following are John's ten most important rules of technical trading:
1.Map the Trends
2.Spot the Trend and Go With It
3.Find the Low and High of It
4.Know How Far to Backtrack
5.Draw the Line
6.Follow That Average
7.Learn the Turns
8.Know the Warning Signs
9.Trend or Not a Trend?
10.Know the Confirming Signs