Main parameters of the trend.

Many traders claim that simply knowing and being able to identify the basic parameters of a trend is sufficient for successful forex trading.

However, experience shows that not all beginners realize that, in addition to trend direction, there are a host of other, equally important indicators.

The most important of these include minimum and maximum prices, the magnitude and frequency of corrections, support and resistance levels, strength, volatility, and, of course, the direction of movement.

In most cases, identifying these indicators is sufficient for a successful trade; however, it should be noted that there are some unique aspects to this process when trading forex.

Highs and lows are the minimum (maximum) price values ​​over a given period of time. For example, over the past five days, the EURUSD currency pair reached 1.3575 and fell to 1.3010. These are the highs and lows for the past five days. If the price breaks one of these levels, the probability of a move in that direction increases significantly.

Support and resistance levels are constructed based on at least two highs and lows and allow one to assess price movement dynamics.

Corrections or pullbacks are reverse fluctuations in the exchange rate, sometimes occurring with remarkable regularity, and offer the opportunity to choose the most opportune entry point.

Trend strength is the likelihood of a continuation of an existing trend. In the stock market, it is determined by the balance of supply and demand for an asset. In Forex, it can only be measured conditionally based on the fundamental factors that caused the trend. The closer the event that triggered a new trend, the stronger it is.

Volatility is the range of price movement and allows one to see the overall market picture and assess the risk level of trades.

Trend direction is the indicator used to determine the direction of a trade, and it varies depending on the selected time frame.

Try analyzing the current trend across all of the listed indicators, draw conclusions based on the data, and open a trade. Improved trading performance will follow.