2. A trend is a strong tendency for a
financial instrument to continue
its price trajectory, either up or
down. Drawing a trend line on a
price chart of any financial
instrument can help you analyze
past price action and predict future
turning points, though you can
never have 100 percent accuracy. It
works well in the foreign currency
exchange market (FOREX) where
chart-driven analysis is common.
While drawing How To Predict a trend Forex
line may
seem straightforward, some basic
tips can ensure you draw it
correctly.
3. A chart is a graphic representation
of past price and volume action. A
chart makes it easy to see a trend:
a rising chart means rising prices
and is called an uptrend; a
declining chart means declining
prices and is called a downtrend. A
trend can also go sideways - no real
change in prices over a period of
time, or stall - not move up or down
despite trading pressures and
prevailing expectations.
How To Predict Forex
4. No financial instrument moves in a
straight line. Prices in an uptrend
may close down for one or several
days; prices in a downtrend may
spike for one or several days.
Fluctuation usually refers to daily
or very short-term price changes,
but the larger the time frame, the
more visible a trend becomes
despite daily price fluctuations.
How To Predict Forex