As a trader, you have to understand that the trend is your best friend. Even though, there are many influences in the market that at times can’t be measure or quantified, traders trade the trend basically means that they do their best to time the market.
It is a common connotation that Forex traders are aware that the market have cycles. How do these cycles even come about? These cycles are formed as a result of the overall human behavior and psychology in the market. Due to this distinctive human characteristic, trends seem to reoccur in the market. Now if a trader is able to study these trends and using price action, there is a gold mine money making machine produced.
I will be elaborating further on the 3 different stages of the trading cycle which you can use to make profitable trades.
Stage 1: Range Bound
This consolidation stage is expected to last for quite a while. During the consolidation stage, the price may move sideways or slightly higher and then move sideways or slightly lower. The range bound movements typically end in a breakout which is the second stage of this cycle. The longer time the range bound movements persist, the bigger is the breakout.
Stage 2: Uptrend
This is the stage where the market breaks its inertia meaning that range bound movements are breaking into clear upward movement. At each point, it will reach a higher price. Also, each trough will also be higher than the previous one
Stage 3: Downtrend
This is the stage where the market breaks its inertia meaning that range bound movements are breaking into downward trends at this stage. At each point, it will reach a lower price. Also, each trough will also be lower than the previous one.
I will be going in depth about these trends in my First Step Program and Stop Loss Hunting Course. You see its not always all about the latest strategy out there, but the mindset and psychology behind the trade and inside the trader’s mind. With my experience for over a decade in the Forex industry, my students have leverage on my mistakes and shorten their learning curve by starting on the right path with my courses. With the Right Mindset, Right Knowledge, Right Skills, Right Mentor, all is possible.