News & Analysis at your fingertips.

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. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
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
More View more
Real Time News
  • What is your forex trading style? Take the quiz and find out:
  • Australian Dollar plunged for a fifth week but held key downtrend support at the yearly lows. Get your weekly AUD technical forecast from @MBForex here:
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here:
  • Last week’s march higher in EUR/USD may well extend further after Friday’s Eurozone economic statistics that will likely turn the ECB more hawkish on monetary policy. Get your weekly Euro forecast from @MartinSEssex here:
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here:
  • A currency carry trade involves borrowing a low-yielding currency in order to buy a higher yielding currency in an attempt to profit from the interest rate differential. Find out if the carry trade suits your trading style here:
  • Cable is pulling off after a strong run; near-term weakness may be the theme before trying to rally again. Get your weekly GBP technical forecast from @PaulRobinsonFX here:
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here:
  • Do you know how to properly Identify a double top formation? Double tops can enhance technical analysis when trading both forex or stocks, making the pattern highly versatile in nature. Learn more about the double top formation here:
  • Dealing with the fear of missing out – or FOMO – is a highly valuable skill for traders. Not only can FOMO have a negative emotional impact, it can cloud judgment and overshadow logic. Learn how you can control FOMO in your trading here:
What Does a Strong Trend Look Like?

What Does a Strong Trend Look Like?

Richard Krivo, Trading Instructor

The premise behind trading strong trends is that a trader will be able to identify the direction in which the market has been taking the pair over time. By trading the pair in only that direction, a trader will be increasing the likelihood of having a successful trade since they are trading with the momentum of the market behind their trade.

Personally, I prefer to consult a Daily chart for the trend. For me I find it a good blend between a much longer term chart, such as a Weekly or a Monthly, and an intraday chart such as a 1 hour or 15 minute.

On the Daily chart of the NZDCHF pair below, we see an excellent example of a pair that is in a strong uptrend…

What_Does_a_Strong_Trend_Look_Like_body_Higher_highs_8_8.png, What Does a Strong Trend Look Like?

First off, we can simply see that price is moving up at roughly a 45 degree angle from the lower left to the upper right side of the chart…that is our first visual cue.

In more technical terms, the pair is trading above the 200 SMA, price action has been making higher highs (noted in green) and higher lows (noted in red) since May 18, and the NZD is a strong currency at the time of this chart while the CHF is a weak currency.

Given all this information, as traders we now know that we only want to look for opportunities to buy this pair as that will put the odds of having a successful trade more in our favor.

Now let’s take a look at a pair that is in a strong downtrend…the GBPAUD.

What_Does_a_Strong_Trend_Look_Like_body_lower_lows_8_8.png, What Does a Strong Trend Look Like?

Our first visual cue in the case of this chart is that price is moving down at roughly a 45 degree angle (the steeper the angle the stronger the trend) from the upper right to the lower left of the chart.

Beyond that we can see that the pair is trading below the 200 SMA, price action has been making lower highs and lower lows since May 23, and the GBP is weak and the AUD is strong at the time of this chart.

With this information, as traders we now know that we only want to look for opportunities to sell this pair as that will put the odds of having a successful trade more in our favor since we are trading the pair in the direction that is favored by the market.

As a bonus, here is a chart that as one who trades strong trends I would avoid…

What_Does_a_Strong_Trend_Look_Like_body_even_8_8.png, What Does a Strong Trend Look Like?

In the case of this GBPUSD Daily chart we can see that since the end of May the pair has been trading flat…in a range. All the highs are about the same and all the lows are about the same as well. Price is trading right along and just below the 200 SMA and the GBP and the USD are both weak currencies. As far as trend trading this pair goes, there is no discernible trading edge.

A range trader however, might look at this pair as a very likely candidate.

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