How to enter to a trade?
TREND IS
YOUR FRIEND, all of you know what is a trend and i dont want to explain it in
detail,below is a picture of a trend of EUR/USD.
you can see
lots of bulls and bears on the chart.
The terms bull market and bear market describe upward and downward market
trends respectively. The terms "bear" and "bull" are
thought to derive from the way in which each animal attacks its opponents. That
is, a bull will thrust its horns up into the air, while a bear will swipe down.
These actions were then related metaphorically to the movement of a market: if
the trend was up, it was considered a bull market; if the trend was down, it
was a bear market.
ok let me answer this question, today is sunday and a man is asking from you whether it will rain or not? what will you do? you will wonder, but finally you will look into the sky and you'll give him a answer, if its cloudy you'll tell it has chance to be rain 80%, and if its a sunny day then you will answer it has 10% of rain likewise. ok its just an example. and now will move to EUR/USD trend , look at the above trend . now a trader is asking from you to give him the direction of the above trend, now the problem starts for you!!you can answer whether its gonna rain or not with the help of sky, at the meantime the sky indicate you to get the answer. please consider here the sky is the indicator to verify whether its rain or not right? what is the indicator for trend whether in future the trend will be a bull or a bear trend?
now you can check for the indicators which traders are using to identify the trend's direction. now you have to find out what are these indicators.
there were not only 1 or 2, there are thousands of indicators that we can use. keep in mind that the indicators are not the only way to identify the trend right, some traders using fundamental analysis too, which means they are keep looking at the over whole news to identify the trend. there are two type of traders, which they are TECHNICAL TRADER & FUNDAMENTAL TRADER.
Technical trader trades with technical analyzing , which means using the indicators and trading systems.Fundamental trader trades with news. ok first we look into this technical trader on our next post.
