Trend Analysis - Recognizing Forex Trading Trends

We have already covered various Forex trading trends, but it is also important to learn Forex trading strategies for recognizing trends.

In this guide we will first teach you about what are trend lines, and then go on for an elaborate explanation of the various trend strategies:

Basic Trend Pattern Strategy

• Sideways Forex trading Strategy
• Uptrend Forex trading Strategy
• Downtrend Forex trading Strategy

Reversal Trend Patterns

• Double top
• Double bottom
• Head and shoulders top/bottom

Continuation Patterns

• Symmetrical triangles
• Ascending triangles
• Descending triangle
• Flag/pennant
• Rectangle

Gap Patterns

• Breakaway gap
• Runaway gap
• Exhaustion gap
• Island reversal gap

A Forex trading trend line is sketched by drawing a straight line above the daily highs for a downward trend and below daily lows for an upward trend. Forex trading trend lines are very fun to use, because you need to use your mental skills in order to recognize the different patterns in the right Forex trading chart. This is not an easy task, as the chart is usually filled with chaotic lines that constantly rise and drop. With the right practice though, you are able to improve your chart skills and recognize trends in no time. Attend each forex trading class that we offer, and you'll actually become a well educated investor.