For those who haven’t, let me explain. Trends are one of the most important things to consider when trading on any asset. Like many strategies for binary options that work, this approach looks to profit from intra-day trends and moves forex trend following techniques to fall larger trends.
First I will cover off a little about trends and why they are so important when trading. It can be set over a number of time periods. Short term trends frequently exist as part of much larger trends. These may run over days, weeks, months or even years.
It is important is that you note the trend over the time period that you are trading. All recognize and take into account the larger trend when making your decisions. The textbook definition of an uptrend is when the price action of the chart shows a series of higher closing highs and higher closing lows. There will be some periods where the price action pulls pack and consolidates, however the dominant directional movement of price will be upwards.
This is the reverse of the above. Here the price action on the chart will display a series of lower closing highs and lower closing lows. Again there will be periods where the price rallies and times when the market consolidates. The dominant direction will be downwards. It is important to note that you can only yield profits when the price of an asset shows clear directional movement.