This is the hardest thing to do in Forex. Most people do not have a clear idea when the movement is going to be bearish or bullish. Though these are the fundamental concepts, many people still cannot figure out what is going to happen in the future. There are confusions and it results in a loss. There are thousands of tricks but all result in a loss. This article is going to tell some ways that can help to figure out the different pattern. Do not be overconfident as there is always a chance of loss, even the professionals fail to make money with the volatility. These tricks are not magic and only helpful when it matches with knowledge and experience.
A bearish trend
The simplest way to find out is by looking at the pattern. If we forget about the Forex terminology, for the time being, it is the time when the price direction is going down. It is easy to remember but when the investment is placed, thousands of news and doubts confuse the mind. People forget even the common things but there is an easy trick, a bearish trend will bear all the obstacles. It was born to bear, it will go down and stretch downward but will never accept defeat. Most people aim for bullish trend thinking it is profitable, with the right strategy a bullish trend can also produce the expected result.
A bullish trend
This is the opposite of the first trend. As there are only two patterns on the chart, the investors can easily know which the bullish market is. It is like a bully, the price will continue to rise steadily. The professionals make a decent amount of money by selling the currency pairs in a bullish pattern. However, small volatilities can confuse traders. Expect changes but a bullish pattern will rise upwards. Without using the indicators, a trader may find in plain sight when the industry is going to exhibit two of these movements.
Using simple trend line tools
You don’t have to be a super genius to find the perfect trend. Just use the demo trading account from Saxo and learn the use of trend line trading technique. To find a bearish trend you need to connect three lower highs associated with a lower low. On the other hand, if you connect three lower highs associated with higher highs you will get the bullish trend. But make sure you are using this technique in the daily or weekly timeframe or else you will never get the long term picture.
Are there any other ways?
The explanations provided were simple and for the beginners. Every successful trader was a novice and with the right guideline, it is possible to reach the peak of success. Never think brokers will step in and do the work for you. Every person is busy with his investment and there is not a moment to waste. As this sector is live, there can be a change in price. To keep the capital safe, it is advised to use indicators and patterns. These tools come with trading platform assisting in predicting the movement. It takes time to develop skills but a good way to manage uncertainties. The best way is by learning from the professionals, but this is also costly. Most traders charge a good amount of money to teach the students. You are also expected to know the forex terminologies and concepts. Many investors are smart and go for the premium signals. A bunch of analysts provides possible forecasts, the investors follow the forecast and plan the trade. There is no certainty that the forecast will be successful, people give a try. However, there are doubts why people do not get rich through their services. This takes us in the beginning because there are no best ways than developing knowledge and practicing. The results will take time to materialize but it will last for a long time.