A Forex broker that wants to be successful at what he does should have a passion for the market, a proper emotional management and most of all, the ability to see the big picture.
A Forex broker that wants to be successful at what he does should have a passion for the market, a proper emotional management and most of all, the ability to see the big picture. Being able to distinguish the whole perspective and acknowledge the bottom line is what differentiates the leaders from the followers, and in a forex context, is what helps a broker successfully analyze trends, which will eventually translate into more profitable transactions.In short, a forex trend is the general direction of the market or of the asset’s price. So if a broker trades with a trend, trades will have a higher win probability, which means the forex broker will make more profit and loose less trades. A trend can be consider a friend, a friend that if read properly, can guarantee higher returns. The first thing you have to know about trends are their direction, as they are absolutely essential to trading and analyzing the market. In the currency exchange market, it is possible to profit from both up and down movements, because the buying and selling of one currency is always linked to another currency. Markets never move straight up and down, and in order to make money, a trader must catch the wave at the right time. Of course there are tools that can help the forex broker catch the wave at the right time. These are called forex trend lines, and they serve the purpose of reading patterns, diagrams, statistical analysis and other data to extract valuable information and reach an efficient conclusion. How do they do that? Trend lines serve a variety of purposes. They help depict the support and resistance levels, which are of great importance in deciding the sale or purchase of various investments. They also help investors decide their entry and exit points to the forex trading market. Another useful purpose is to familiarize the forex broker with the nature of the market; the sharp turns taken by trends and unwarned movements of different investments. Forex trend lines are available in different popular forms. Simple trend lines consist of straight lines drawn vertically, horizontally as well as diagonally. Fibonacci trend lines have gained popularity in recent times and are excellent tools of understanding current market trends. Pivot trend lines are drawn on the basis of fluctuations in the market during previous time frames. Speed trend lines are similar to Fibonacci trend lines, with the only replacement of Fibonacci numbers with calculations by thirds. Remember that forex trend lines are all about providing useful information, so always do your best to complement them with your own research on circumstances that can affect market trends. There is a lot more to trend lines that can be useful for a successful forex activity, so read, ask, compare and most of all, practice.