Do you know how to make profits from forex trends? I will explain the process to you in this article.

What is a trend in forex?

Trends in forex or forex trends are the direction the market is going or the direction of the market per time. The time being looked at can be one hour, 4 hours, one day, one week, one month, one year, or any other time that any trader chooses.

What are an uptrend and downtrend?

An uptrend means that the market is buying or going up in the time under review. A downtrend means that the market is selling or going down in the time under review. As stated earlier the time under review can be anytime.

What causes a trend?

A trend occurs when one currency is stronger than the other or when the other currency is weaker than the other. The strength here is not the normal strength and the weakness here is not the normal weakness. The strength must be very strong and the weakness must be very weak for a trend to occur. A country’s currency may be strong if the economy of that country is good, if the country is at peace, and if there is all-round stability in the country. On the other hand, a country’s currency may be weak if the economy of that country is bad, if the country is at war, and if there is all-round instability in the country. When a country is at war, sanctions are put out by other nations in the direction of the country in focus. These sanctions lead to economic and sociopolitical ruins for that country and its currency. During the war or other such sanctions, for example, the currency of such a country will keep getting weaker and weaker. The other currency pair will keep benefitting as the market will keep going against the country at war or under sanction.

How can you make profits from forex trends?


1. Look for buying opportunities in an uptrend

In an uptrend, keep looking for buying opportunities or keep buying. Since the trend is up, it will keep going higher and higher. So, the best bet of any good trader is to keep buying as the trend is up. Anytime any buy candle or signal shows up, just buy. Be wary of selling in an uptrend as that could be a bear trap.

2. Look for selling opportunities in a downtrend

In a downtrend, keep looking for selling opportunities or keep selling. Since the trend is down, it will keep going lower and lower. Lower lows will be obtained from time to time. So, the best bet of any profitable trader is to keep selling as the trend is down. Anytime any sell candle or signal shows up, just sell immediately as it confirms the trend and the trend confirms it. Be wary of buying in a downtrend as that could be a bull trap.

In conclusion, you can make profits from trends if you follow the examples given here. they are simple but they are also powerful. Now, make the trend your best friend in forex or stock trading, or even crypto trading and you will make profits always.

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