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Identifying the Market Trend & Forex Trend Systems

The accurate recognition of a strong Forex market trend can lead to the accumulation of great trading profits. Forex currencies tend to trend well in long directional moves. During these price movements, traders can gain a serious advantage over the market and increase considerably the likelihood of profitable trades.

Forex Trend Duration

In general, a Forex market trend can last for hours, days, weeks, months, or even a few years.

-Short-term trends usually occur due to simple inefficiencies between demand and supply

-Long-term Forex trends occur and evolve according to new fundamental data, and reverse due to key fundamental changes

Multiple Trends in the Same Market

The same market can be the subject of different trends. The best approach to deal with different trends in different timeframes is the Descending Approach. That means commencing the trend identification on the higher chart by moving to lower charts. You can start on a Daily Chart and then move to H4 and H1 charts. Even shorter timeframes can be useful, in optimizing your position’s entry/exit.

Distinguishing Market Trends

There are two main trend types: the (i) primary, and the (ii) secondary trends:

(i) Primary Trend

The Primary Trend is the major trend of the market. It can last for weeks, months or years and includes several short-term secondary trends. According to the Dow Theory, the primary trend has a strong impact on the secondary and minor trends within the same market.

(ii) Secondary Trend

A secondary trend is less significant that a primary trend and can last for hours, days, or weeks. The secondary trends move usually in the opposite direction of the primary trend. That includes short-term corrections, take-profit periods, or bear market rallies.

Secondary trends can also occur in flat markets. This means moving towards the boundaries of a specific range. When the price reaches the upper or the lower boundary, the market retraces on the opposite direction and a new secondary trend commences (Ranging Markets).

Identifying the Forex Trend

The easiest and the most practical method to identify the market trend is to observe the series of highs and lows:

  • A bullish market is a market that makes a series of higher highs and higher lows
  • A bearish market is a market that makes a series of lower highs and lower lows

There are many additional methods and tools to identify the trend:

  1. Identifying Chart Patterns (Bullish and Bearish)Learn More
  2. Identifying Harmonic Patterns (Bullish and Bearish)Learn More
  3. Identifying Candlestick Patterns (Bullish and Bearish)
  4. Combining Two Moving Averages and Observing their Behavior (1 Fast and 1 Slow Moving Average)
  5. Identifying 2 Trendlines forming a Price Channel (Bullish and Bearish)
  6. Using Indicators such as the ADX, Bollinger Bands, CCI, and Standard Deviation

 

Hotforex Benefits

 

Forex Systems for Trend Identification

These are some commercial trading systems for easy trend identification and trade signals generation.

(1) Forex Trendy (All Platforms)

  • Type: Trend Scanner (34 pairs in 9 timeframes)
  • Signals: E-mail, Desktop/Sound Alerts
  • Platforms:MT4 | MT5 | NinjaTrader | TradeStation
  • Cost: $37 for 3-months

» Visit the Forex Trend Scanner

Forex Trendy is a stand-alone Forex trade system that focuses on real price action. The system identifies trends without the use of indicators. The Forex Trendy scans 34 Forex pairs in 9 timeframes (between 1 minute and 1 month). The system generates reports based on:

  1. Master Trend Identification
  2. Chart Pattern Recognition
  3. Pattern Break-Outs Recognition
  4. Flags, Triangles, and Trend Lines Recognition

Forex Trendy Members’ Area

Forex Trendy offers access to a dedicated members’ web page. These are the features of the Forex Trendy member’s area:

  • Visualized interface and 1-click customization
  • Daily Reports (recognition of Flags, Triangles, Wedges, and Trend Lines)
  • Trade signals based on 34 pairs and 9 timeframes
  • Delivering signals via Email and Desktop Alerts
  • Free eBook

The Forex Trendy system uses its own powerful online servers to analyze simultaneously 306 charts (9 timeframes x 34 pairs).

» The Forex Trend Scanner

 

(2) Pips Wizard Pro (MT4)

  • Type: Market Analyzer (M15-D1, all Pairs)
  • Signals: E-mail, SMS, Desktop/Sound Alerts
  • Platforms: MT4
  • Cost: $87 (one-time)

Pips Wizard Pro is an MT4 indicator designed as a trend indicator tool and a signaling machine. Pips Wizard Pro works on any Forex Pair, Index, or Commodity on multiple timeframes (M15 to D1).

Pips Wizard Pro in Action

The Pips Wizard Pro works on any financial market (Currencies, Stocks, Indices, Bonds, and Commodities). The system is very easy to use:

Step-1: Open an asset on MT4 (Forex, stock, etc.)

Step-2: Select a timeframe (M15 to D1)

Step-3: Wait for your alert to enter a trade

Step-4: Enter the stop-loss and take-profit orders (both are given by the alert window)

The indicator visualizes two different lines:

  • The blue line, which indicates a buy signal, and
  • The red line, which indicates a sell signal

The Pips Wizard Pro alert traders via email, SMS, or Desktop/ Sound alerts.

The Pips Wizard Pro alerts include:

  • The currency pair and the Entry Price
  • The timeframe
  • Two additional orders (Take-Profit and Stop-Loss levels)

You can trade with Pips Wizard Pro with as little as $100, although they recommend a minimum of at least $250. The team behind the indicators provides full support (money management and technical queries)

» Visit the Pips Wizard Pro System

  

(3) EA Builder for Building Custom Manual/Automated Systems (MT4, MT5, TradeStation)

  • Type: Create Custom Trend Systems (All timeframes and all Pairs)
  • Signals: E-mail, SMS, Desktop Alerts
  • PlatformsMT4, MT5, TradeStation
  • Cost: Free for Indicators / Paid for EAs

» EABuilder Website 

The EA Builder is an online system used for the creation of custom trend indicators. The app is easy to use and does not require any programming skills.

EA Builder Features

  • Transforming any ideas into Indicators and Expert Advisors (Forex Robots)
  • Compatible with MT4/MT5 and TradeStation Platforms
  • Trading Currencies, Stocks, Indices, ETFs, Bonds, and all Commodities
  • Full Technical Analysis Tools (Indicators, Oscillators, Trendlines, etc.)
  • Full Money Management functions (such as spread and slippage control and timing any new position)
  • Alerts via email, desktop, and SMS
  • Suitable for Building Manual and Automated Trade Systems
  • Can be used in unlimited Demo/Real accounts

» EABuilder Online App 

 

Identifying the Market Trend and Forex Trend Systems

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