Forex trending pairs

Author: Drush@ Date of post: 23.06.2017

Following the trends is the best way to make profit and those who are patient enough to stay with trends are usually profitable trader, of course if they know how to limit their risks properly.

Those who are interested in following the trends usually ask about the most trending currency pairs. Probably they mean the currency pairs that form trends, either uptrend or downtrend, more than the other pairs. Does it mean that we have to choose those pairs, wait for them to form trends and then we get in and follow the trends? Probably that makes sense more for those who trade the shorter time frames like one hour.

But those who follow the long time frames , like daily, weekly and monthly, can easily choose several currency pairs, check them once every day and then get in when a trade setup which can be the beginning of a trend, forms. Choosing a trending currency pair and then waiting for it to form a trend on the shorter time frames looks like a good idea to make big profit, but it is not as easy as most traders think.

The trade setups that form on the shorter time frames are usually tricky. Shorter time frames form too many false trade setups compared to the longer time frames.

forex trending pairs

Even when traders use delayed and slow indicators like 50 or moving averages, or MACD , they have a hard time to locate a trade setup that really works and the price moves accordingly after it. This can be ended to following the too strong trends that some currency pairs form sometimes.

Forex Trend Indicators Free, Easy Setup, 9 Time Frames - Forexearlywarning

I admit that there are some currency pairs that form stronger, longer and more stable trends compared to the other currency pairs, but the trends they form are mainly trade-able on the long time frames. Uptrends form when price goes up and forms higher lows. So this is an uptrend:. It means when the price goes down and forms a low, it has to be higher than the previous low.

Is that easy to distinguish a trending market? Sometimes the price behaves strangely, even on the longer time frames. Therefore, traders have always tried to create and use some tools or indicators to become able to distinguish and locate the trends easier.

Moving Averages are the most famous indicators that have been used by traders to locate the trends for several decades. Among all moving averages, the 50 Simple Moving Average or 50SMA is more common among traders. The other indicator which is also a moving average but with different settings, is 20SMA which is in fact the Bollinger Middle Band.

And if they do, can they also help us trade the trends? The question is how could we know that a trend was forming and we could enter the market on time to follow the trend? If you use the moving average indicators, then you have to wait for the price to take a special direction strongly first. For example, it has to go up and move above the 20SMA and 50SMA.

Then, if it goes down to retest the moving averages and goes up, that is the right time to enter the market to follow the uptrend. This technique works theoretically, but in reality you will lose in so many trades to find a trend finally, because when the price goes down to retest the moving averages, you never know that whether it will go up again to continue the uptrend it had started, or it will go sideways and keeps on crossing the moving averages.

If you check the above screenshot , you can locate several cases that the price has hit the moving averages, but has not moved up strongly after that.

This happens a lot when the uptrend is not strong, or when the price wants to form a small downtrend, and then follows the uptrend. I am not going to talk about the trading systems to follow the trends here, because we have already talked about them a lot. What I am trying to say here is that even if there are some currency pairs that trend more than the others, it is not that easy to follow the trend they form, unless you already master a trading system like technical analysis or candlestick patterns.

You will admit what I say if you see the below screenshot. There is a downtrend at the left, and an uptrend at the right. What we have at the left is still called a downtrend, but it looks impossible to trade using the moving averages, or even technical analysis.

Some parts of the right side uptrend are trade-able but there are some choppy areas and sideways movements at the middle of uptrend. Trading the trends is not a myth , but is not that easy either.

Forex Market Trends - Thursday 22 June | Realtime Forex

There were some good chances to follow the upward movements:. In general, mastering a trading system and using it to locate the too strong trade setups on the long time frames is the best way of follow the trends. Those who try to hit the bottom or top of the markets, usually lose a lot sometimes.

Best Trading Forex Pairs

Among these traders, are those who try to follow the most trending currency pairs on the shorter time frames. Traders have to know that it is not possible to catch all the movements and strong trends, because we never know what trade setup ends to a strong trend.

All we can do is that we take the strong trade setups, set a reasonable and proper stop loss and move it to breakeven at the right time. If the trade setup we take ends to the formation of a trend, then good. In that case, will it be a setup? Hi Chris, you are always right.

I have experienced how difficult and risky is to trade the trending currency. Especially if you have not Experience.

Forex: Identifying Trending And Range-Bound Currencies

I understand those who are already experts who want to take every possible opportunities for profitable trade. For me it is premature. I would say an uptrend will have higher lows, and higher highs, Correct? And Chris you are right on, it is not easy to pick out the trends on lower time frames, total different picture. Great article as always.

It has to have higher lows to be an uptrend, but at the same time it can have lower highs. See the examples in the above article. Thanks for another great article. When it the right time to move a stop loss to breakeven? I know that we say to do it when we hit TPx5 or whatever, but I wonder if the setup is not a too strong score then moving up sooner is wiser? I have had trades with a target of TPx5 hit the TPx3 level and then reverse to hit the stop loss.

There is no exact answer to this question. There are a lot of signals that you can use to move the SL to breakeven. Many traders expect to enter at the start of a trend and exit at the very last candle.

But I think if we are truly professional to take even two third of a trend that is a huge success for us. I hope we could grow our account to a reasonable balance soon with your help to savor the peace of mind of longer timefrmes. Hi Chris I think one has to have nerve of steel to follow a long term trend, because at the first retracement or correction I will get out.

Hi Nicolaas, I have the same problem: May be the success rate would be a little bit lower,but trading stress free is really worth this. Fact is that only when we feel emotional pain and dissapointment from losing trades we start to pay attention to strong trade setups how strong they are and it is worth to enter on trade. Many off us enter on market becaouse they think that this will work out insteead to listen the Market what is got to say.

We are lucky becaouse we have each other,we have chance to learn together, to educate ourselfs and support each other and having you Chris as our mentor and LuckScout team is most precious thing we ever need to become consistantly profitable trader. From your examples, I see that I have to wait for several days, weeks even months to catch a good trend. We all miss some of the setups. However, the ones we succeed to take are enough for us to make the profit we want. There are always enough number of setups even on the long time frames.

The way we are following the markets is a good and effective way to take most of the strong movements. Just focus on locating the strong setups. The profit will be made by itself. It makes us to look for more ways to trade, and this will end to nothing but loss. I do not have words to express my gratitude for the Forex Trading knowledge you teach me. I have analyzed and did a manual back test on weekly TF for all the major currency pairs for the past 5 months.

I am confident that I will definitely take such trade setups in next 5 months and follow strict weekly TF. Also I went Short on NZDCAD.

It is doing good. Hi Chris, thanks for all you do. Your articles are really spot on: You are right that we get stopped out a lot but will surely get there. I just feel for me trend is easier because one good trend can keep me in and cover several trades. Stochastic default setting is 14 periods.

A good article on stochastic indicator is here: As per your explanation, took the GBPUSD as it formed above low mbb and sat nIcely on 50MVA on June 6th an uptrend continuation and with a higher low.

However, exited in panick 2days ago when it reversed, long lower shaddow but also took a but limit for a good price after convincing myself that the upward signal was valid.

This is a very usefull article. I think 50sma is another indicator in should add to my chart to use in hand with bb. Great article again, always take away some useful information from your articles.. It will happen soon. Assuming there would be two strong setups occurring simultaneously, but, for…. I take the one that has formed a stronger setup. If the setups look the same although you can never find two same setups , I consider the other things like Swap, liquidity, pip value and….

Hi Chris, Thanks for your nice article that makes me clear for a trend finding. Actually my forex trading life completely changed by reading and following your articles. As a result my account is growing gradually after finding LuckScout. I am very much liable to you. I am glad to hear you are doing good. Keep on following the same right track. Hi Chris Thank you for sharing your knowledge with us.

I am very new to this game. Although I would love to trade long time trade but I feel that I have to start with shorter time frame and build on that. Can you apply 50SMA and 20SMA on a smaller time frame like 4H or 1H?

Many thanks for your help.

I agree, trend trading is easier said than done but with patience and discipline it is doable. The good news is that all the necessary tools to do that are all here on LuckScout.

They are removed for some technical reasons. Still they are sorted based on date on the archive page: Very valuable article indeed. I can appreciate how skillful we need to be to follow the trends and breakouts, do it in a right time as well and come out with the profit not loss.

I think the more you trade, the more aware you become of unpredictability of the market. That teaches you patience and acceptance of what is. I can see more clearly now, why You take only the strongest setups and skip the weaker ones… Its about minimizing the risk which seems to be huge on such volatile and wild market.

Its funny, that One need to experience those things to really start to see the risk involved. I am slowly getting to that stage to understand that all the hassle of trying to pick up some blurry setups is not worth it in a long run. It costs too much nerves and its bound to make you disappointed! I always looked at the higher highs, when it comes to check if I have an uptrend.

Thank you for this great article. Fundamentals support your position only when you are in based on a too strong trade setup on a long time frame: You can stay longer with a trend, if you enter based on a shorter time frame, and stay in based on a long time frame.

For example you get in based on a too strong trade setup on the daily chart, but you stay in based on the weekly and monthly time frame.

Mentor Chris, Thanks for this awesome, enlightening, educative article, as usual. I know better now. Please keep up the good work. God bless you really good.

forex trending pairs

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