Perhaps many have heard the expression "the trend - the main one trader." Different sources have different attitudes to the trend, but that actually does this expression?
The main rule regarding the trend is: always trade with the trend and ignore short-term signals a reversal.
If you are trading with the trend, it will be your assistant and reduce the risk of erroneous transactions. Unfortunately, many new traders tend to scalping (short-term intraday trades), try to catch the slightest fluctuations of the market and are often the opposite trend position. But to close the transaction erroneous determination is often not enough, as a result - a loss. This often means that the trader lacks main qualities - discipline. And after a loss, when people begin to analyze their mistakes, they were the last to understand what a major mistake made - trading against the trend. Do you have friends who would not have protested if you do something contrary to their will? Hardly. Conclusion: better to trade with the trend.
How do I determine the current trend? Generally, the trend is determined by looking at the daily chart (D1 in Metatrader) - is optimal. For traders with a small deposit will also work schedule of 4 hours (H4) and 1 hour (H1). And the best - to compare the movement of these graphs together.
Also, do not be put on the charts more than indicators of MA (Moving Average) - MA 5/20/40/60. If the above MA5 MA20, MA40 and MA60 above (Moving Up) - we are entering the market. If the trend is down, and MA5 and MA20 MA20 and MA60 overlap - so it's time to close out positions.
And vice versa - MA40 MA60 under, under the MA20 MA5 - are entering the market. As soon as the MA5 and MA40 MA20 and MA60 is crossed moving up - close. It's very simple.
The main rule regarding the trend is: always trade with the trend and ignore short-term signals a reversal.
If you are trading with the trend, it will be your assistant and reduce the risk of erroneous transactions. Unfortunately, many new traders tend to scalping (short-term intraday trades), try to catch the slightest fluctuations of the market and are often the opposite trend position. But to close the transaction erroneous determination is often not enough, as a result - a loss. This often means that the trader lacks main qualities - discipline. And after a loss, when people begin to analyze their mistakes, they were the last to understand what a major mistake made - trading against the trend. Do you have friends who would not have protested if you do something contrary to their will? Hardly. Conclusion: better to trade with the trend.
How do I determine the current trend? Generally, the trend is determined by looking at the daily chart (D1 in Metatrader) - is optimal. For traders with a small deposit will also work schedule of 4 hours (H4) and 1 hour (H1). And the best - to compare the movement of these graphs together.
Also, do not be put on the charts more than indicators of MA (Moving Average) - MA 5/20/40/60. If the above MA5 MA20, MA40 and MA60 above (Moving Up) - we are entering the market. If the trend is down, and MA5 and MA20 MA20 and MA60 overlap - so it's time to close out positions.
And vice versa - MA40 MA60 under, under the MA20 MA5 - are entering the market. As soon as the MA5 and MA40 MA20 and MA60 is crossed moving up - close. It's very simple.
