As a trader, the ability to identify where prices will move is important. Because, opening a position opposite to Trend can endanger the resilience of the trading account itself. Floating minus that occurs can be increasingly swollen. Moreover, if the Trend's strength is still too great to continue the direction of the price movement, this can be a bad sign because your position is increasingly insecure.
here are some ways to detect Forex Trends that you can apply:
1. Using Average Market
The first way to detect Forex Trend is to use Average Market. For example, you are currently in the Asian session, watching carefully the High and Low. Add these two High and Low numbers, then divide by two. If the results have been found, then the Average value can be used as a benchmark to identify the movement of the Trend in the next Market.
2. Using the Moving Average
One of the best tools for identifying the current trend is the Moving Average indicator. how to detect Trend Forex with this method is also quite simple, for example using the MA-100 Day Indicator. Then, see if the price is below the Moving Average line or above it. If the price is below it, then the current trend is bearish or the price tends to decline. If the price is above, it means that the current trend is bullish or the price tends to rise.
3. Using the Bolinger Band Indicator
Bollinger Bands indicator is one of the multi-functional technical indicators. Why? Because this indicator can be used as a guide to measure volatility and determine the direction of the price movement trend. Inevitably, the indicator of John Bollinger concoction is very popular and often used in forex trading.
To be able to identify trends using the Bollinger Bands indicator, the method is quite easy, namely by looking at the price breakdown in the Bollinger band that occurs. If the price moves past the upper band, and the closing price is outside the band, then this indicates that an Uptrend will occur. Conversely, if the price moves past the lower band and closes outside the band, then this indicates an ongoing trend is DownTrend.
Linkback: https://www.forex.zone/forex-education/29/how-to-detect-forex-trends/2320/