{"id":107695,"date":"2017-06-25T07:12:34","date_gmt":"2017-06-25T11:12:34","guid":{"rendered":"http:\/\/countingpips.com\/?p=107695"},"modified":"2017-06-19T07:13:10","modified_gmt":"2017-06-19T11:13:10","slug":"%e2%80%8b19-key-aspects-for-trend-trading-in-forex-and-cfd-markets","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/06\/%e2%80%8b19-key-aspects-for-trend-trading-in-forex-and-cfd-markets\/","title":{"rendered":"\u200b19 Key Aspects for Trend Trading in Forex and CFD Markets"},"content":{"rendered":"
June 25, 2017<\/div>
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By Admiral Markets<\/b><\/p>\n

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Dear traders,<\/p>\n

Did you notice that trend trading is only easy on paper, but spotting a trend becomes way more challenging on real live charts?<\/p>\n

Perhaps you feel confused when you see price action build trends in the opposite direction?<\/p>\n

In theory, trend trading sounds <\/em>simple, but in practical terms, traders are often unsure about the real <\/em>trend in the market.<\/p>\n

Today’s article is an attempt to simplify the art and science behind trend trading, which is broken down into simple and manageable steps.<\/p>

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It is also important to understand the role of the trend within the market structure<\/a> at the end of this article.<\/p>\n

\"Forex101<\/a><\/p>\n

The Art and Science Behind Trends<\/h2>\n

Trend trading can be very beneficial, but not if traders are buying or selling at trend reversal spots. Basically, trend trading boils down to these simple steps:<\/p>\n

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  1. TREND: Reading the direction of the trend correctly;<\/li>\n
  2. CORRECTION: Recognising corrections within the trend;<\/li>\n
  3. REVERSALS: Monitoring reversal signals for the end of the trend.<\/li>\n<\/ol>\n

    The problem with trend trading is that the chart often becomes confusing, and, eventually, paralysis of analysis could occur. The best approach to avoid the two aspects is to:<\/p>\n

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    1. Only choose one or two time frames for trend spotting;<\/li>\n
    2. Do not add more than two or three indicators for measuring the trend;<\/li>\n
    3. Wait for the pullback (correction) within the trend before entering.<\/li>\n<\/ol>\n

      I will discuss my favourite tools and indicators in the next paragraphs. Feel free to check out the video below about trend trading as well!<\/p>\n