Trend, Momentum and Timing

When doing technical analysis on forex. There are 3 factors that need to be properly recognise and use. They are trend, momentum and timing.

Trend
Trend is the tendency of movement to a particular direction. When it is uptrend, the price will move up and vice versa.

Momentum.
Momentum is the strength of movement. The stronger the momentum the stronger the move. When the momentum is finished, it will reverse.

Timing
Timing is when u enter the market. Enter only when the profit to risk ratio is good. Other than that better stay out.

Source | 24/7 UP To Date Forex News - Foreign Exchange Market | http://247forexnews.blogspot.com/2010/11/trend-momentum-and-timing.html

How To Trade The Trend

This is going to be short and simple. The best system is the simplest. Take any of your best indicators, apply them to daily chart. Look for the trend.

Take the same indicators apply them to hourly chart. Based on the daily trend look for entry.

If the daily chart is saying uptrend, use your hourly chart to find long position only. If the daily chart is saying downtrend, use your hourly chart to find short position only.

If the daily chart is saying uptrend and u have a short signal from your hourly chart, you can close your position and take another position when the hourly chart is giving the same signal as the daily chart and vice versa.

Remember forex is not about how smart you are. Its about discipline and money management.

Source | 24/7 UP To Date Forex News - Foreign Exchange Market | http://247forexnews.blogspot.com/2010/11/how-to-trade-trend.html