Forex Credit

It is well known in the currency trading world that the trend is your buddy and any forex trading method based around following a trend is likely to be both simple and effective. It is easy to make trend lines on any foreign exchange chart, but most folks prefer to use candlestick charts for this because the candlesticks are such a clear visible signal. When trend lines are forming, you can use them as a signal to sell or buy the currency pair. Naturally there will always be fluctuations, but at specific times you will see clear patterns. 1. This line will be sloping upward. Then draw another line through the lowest lows on the chart. If this line is also going upward and is approximately parallel to the first, you have an rising trend. You can then use these two lines as support and resistance lines. Therefore , any time that the price hits the top line you could sell, on the presumption that it will fall back. In a sense this strategy means going against the trend, but you would only hold that position for a little while. otherwise, any time that the price hits the bottom line you could buy, on the assumption that it will shortly rise again. However, you may bear in mind that there will at some specific point be a true reversal and you could be caught out by this.

2. If the price is falling

If the price is going down, you can follow an analogous methodology to the previous system. The lines you draw will be going downward but you would still buy when the price hits the lower line and sell when it hits the upper line.