Practical trend analysis.

There are a lot of different methods through which you can analyze the current situation on the Forex market; each method has its own advantages and disadvantages.

Some are ineffective, others are highly complex, which is why it is so important to use the optimal analysis option, which will give the best results even for a novice trader.

Practical trend analysis is nothing more than creating an optimal market study scheme in which only the most important factors influencing the movement of the trend will be considered.

Its implementation can be divided into the following stages:

1. Review - you open the chart of the currency pair you need, select the time frame that corresponds to your Forex strategy and make an initial assessment of the situation - the presence of price gaps, sharp jumps in the rate, trend reversals, etc.

That is, you visually assess what is happening in the market. 2. Trend - its direction always serves as a guideline when opening transactions, so at the second stage we determine where the price is moving exactly in our time period and how long this movement will last.

Here parameters such as market volatility , trend speed, and its dynamics are assessed. All studies can be done either manually or using special indicators, for example, Ultra wizard .

You can also take into account other signals, for example, those determined through the use of candlestick analysis.

3. Prospects – when conducting a practical analysis of a trend, it is quite important to know how long the existing trend will continue.
To do this, you need to take into account not only the strength of the trend, but also the likelihood of the influence of fundamental factors (news).

the Forex calendar contains .

It is precisely when important news is released that you should plan the duration of transactions, this will allow you to maintain the profit received.
The scheme for conducting practical trend analysis is quite simple, this is where its effectiveness lies; you can independently choose both the analysis method and the sources of signals for opening transactions.