How Forex Market Moves

How the Forex Market moves?

Usually, market moves in three different ways.  They are:

  1. Up Trend
  2. Down Trend
  3. Sideways Trend (Ranging)

Up Trend:

When the price is moving upwards, we call it as Up Trend.  Up Trend forms Higher Highs and Higher Lows or a series of Ascending short term Bottoms.  When we find minimum three Bottoms we can call it as Up Trend.

Up Trend

IMP: When price is in Up Trend, look for only Buy opportunities in that particular time frame.

Down Trend:

When the price is moving downwards, we call it as Down Trend.  Down Trend forms Lower Lows and Lower Highs or a series of Descending short term Tops.  When we find minimum three Tops we can call it as Down Trend.

Down Trend

IMP: When price is in Down Trend, look for only Sell opportunities in that particular time frame.

Sideways Trend (Ranging):

When the price is moving in between two Lines, we call it as Sideways Trend.  Sideways Trend forms Equal Tops and Equal Lows. 

Sideways Trend

IMP: When price is Ranging, this is not the right time to enter into the market in that particular time frame.  Please don’t enter into the market until, price breaks to the up side or downside.

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