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
More View more
Real Time News
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here:
  • The update to the US Consumer Price Index (CPI) is likely to sway the US Dollar during the Federal Reserve’s blackout period as the central bank braces for a transitory rise in inflation. Get your weekly $USD forecast from @DavidJSong here:
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency:
  • Becoming a forex trader means living and breathing the excitement, risk and reward of trading in the biggest and most liquid market in the world. Do you have what it takes? Read here to discover the qualities and processes it takes to build consistency:
  • Global stocks bounce back from recent pullback as key resistance levels lie ahead. Get your weekly equities forecast from @HathornSabin 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:
  • Bitcoin (BTC) started the day on the front foot on the Twitter news before the latest China crypto ban hammered the market lower. Get your weekly crypto forecast from @nickcawley1 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:
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here:
Learn Forex: Trend Trading Basics

Learn Forex: Trend Trading Basics

Walker England, Forex Trading Instructor

Article Summary: Trend traders enjoy the luxury of first identifying market direction prior to executing a trading strategy. Today we will review the basics of trend identification.

Traders enjoy trading trends to take advantage of extended directional market moves. This is especially true in the Forex market where trends can last for days, weeks, months, or even longer. If a trader can find the direction of the trend, it can exponentially increase the likelihood of having a successful trade.

To begin our discussion on trend trading basics, we first need to be able to identify two types of trends. Today we will begin with finding both an uptrend and a downtrend using a daily chart.

Learn Forex – NZDUSD Daily Uptrend

Learn Forex: Trend Trading Basics

Identifying an Uptrend

Identifying an uptrend is the first skill we need to tackle before trading directional markets. An uptrend can be defined as a market that makes a series of higher highs and higher lows. Pictured above is an excellent example of the NZDUSD pair, which is currently residing in an uptrend. Since the first low pictured at .7454 the pair has advanced as much as 1021 pips! Notice how the pair has now made a series of four higher highs as this uptrend has progressed. This is indicative of a strong trending move and our trend is expected to continue as long as our lows and highs continue to increase in value.

Uptrends are the perfect environment for finding buying opportunities. As seen in the daily graph above each time the NZDUSD has moved temporarily lower, it has found support prior to moving on to higher highs. Regardless of the strategy used, trend traders will continue to buy this uptrend until it concludes with the creation of a lower low.

Learn Forex – EURAUD Daily Downtrend

Learn Forex: Trend Trading Basics

Identifying a Downtrend

The second trend we should learn to identify is the downtrend. This process is similar to finding an uptrend but the methodology is reversed. This time we are looking for prices to continually decline. Both highs and lows should be moving lower, much like we can see in the EURAUD chart above. From the first labeled high at 1.4334, price has made a total of three lower lows while declining a total of 2730 pips.

The decline in the EURAUD depicted above, has taken place over the last two years. This chart has offered many selling opportunities while showing exactly how long daily trends may run. As long as prices continue to head lower, traders will continue to apply their trend trading strategies on the EURAUD.

---Written by Walker England, Trading Instructor

To contact Walker, email . Follow me on Twitter at @WEnglandFX.

To be added to Walker’s e-mail distribution list, send an email with the subject line “Distribution List” to

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