The basis of this trading is that price historically often moves in a trend. There are only 3 basic movements in forex market: Uptrend, downtrend, and sideways. Trend traders take advantage when price is moving up or down, but suffers when price stagnates or consolidates. They rely heavily on trending indicators to get rid of the noises visible on the chart. Any indicators that would cover up the actual price and only gives the general direction of the price is highly sought after by trend traders. But all trend indicators are lagging indicators. And those trend indicators that try to predict the future by any kind of calculation never achieve consistent profit.
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