We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

Free Trading Guides
EUR/USD
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Mixed
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • Cable is back off last Friday’s lows and looks to have set-up short-term support just above 1.2200. Get your $GBPUSD market update from @nickcawley1 here: https://t.co/R6mtP38uQs https://t.co/UdWHjhOeFS
  • Yellen: - #coronavirus 'war bond' may be an appropriate approach for the US
  • Yellen: - May be worth reconsidering Fed asset buying powers
  • Yellen: - Fed not legally allowed to buy stocks - There will be a lot of stress on banks
  • Yellen: - Fed providing massive support - Fed has 'pulled out all stops' - Banks must meet credit needs of the whole system
  • Forex Update: As of 14:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 1.55% 🇳🇿NZD: 1.54% 🇨🇦CAD: 0.40% 🇨🇭CHF: -0.15% 🇪🇺EUR: -0.16% 🇯🇵JPY: -0.57% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/MwJ5eOesPu
  • Yellen is worried we may not see a quick recovery
  • $GBPUSD bounced off the 1.2200/1.2210 area in early trade, despite weekend news that UK PM Boris Johnson had been hospitalized with ongoing coronavirus symptoms. Get your GBP/USD market update from @nickcawley1 here: https://t.co/KcRiWwKaFH https://t.co/H30t64pH96
  • Indices Update: As of 14:00, these are your best and worst performers based on the London trading schedule: Germany 30: 5.39% US 500: 4.54% France 40: 4.49% Wall Street: 4.47% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/4o6K6izS7B
  • Yellen says that the US jobless rate could rise to 12%-13% and beyond
Trading Opposing Trends

Trading Opposing Trends

2012-01-03 03:33:00
Richard Krivo, Trading Instructor
Share:

Oftentimes traders mention that they have a hard time visualizing an uptrend within a downtrend…or a downtrend within an uptrend for that matter.

If you have ever found yourself in that situation, read on…

Have you ever heard the expression, “you may have to take 3 steps backwards before you can take 5 steps forward? In the overall scheme of things, following that plan, you will be making forward progress even though at times you will be moving backwards andaway from your overall objective. This is the same relative premise as downtrends having uptrends in them…and vice versa.

Take a look at the chart below for a visual…

Trading_Opposing_Trends_body_trends_1_3_12.png, Trading Opposing Trends

The overriding trend on this 4 hour chart of the GBPCAD is represented by the blacktrend line. As trend line resistance is sloping down, it shows that price action on this chart is bearish and to the downside.

We can also tell the pair is in a downtrend as it has been making lower highs (green lines) and lower lows (red lines).

Within this downtrend, however, there are several blue arrows that show uptrends… bullish moves against the dominant trend. Even though some of these moves against the trend are quite strong, the overall downtrend prevails.

Since as trend traders we want to trade in the direction of the dominant trend, we would ignore the moves against the trend and only take trades to the downside based on the example chart as these would be the higher probability trades.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES

News & Analysis at your fingertips.