The first step is to identify the direction of the trend on the daily chart and the next step is to find your trade in that same direction, either on the daily chart or on the 4-hour or hourly chart. I think that by only trading the strongest trending markets, you increase your chance of success on the trade by trading in that same direction. There are an unlimited number of ways to identify that entry and certainly our course is filled with many examples. Another choice would be to use the Trading Signals found in DailyFX+. They offer specific entry and protective stop levels to help those traders who may not have an approach that they are comfortable with. But the first step is in finding the strongest trending markets and that is what we intend on doing in this thread. The next step is is identifying the entry in the direction of the trend and using the Trading Signals in DailyFX+ is one of the resources available for live clients at FXCM.
The first trending pair this week is the EUR/USD. A new 4-year low was printed this morning which confirms the strong downtrend. But it is the series of lower highs and lower lows since the beginning of the year that is the reason that this pair has been identified as a strong downtrend. I would continue to look for selling opportunites as long as the pair remains below the 1.26711 low of May 21st.
If you would like to find out more about the Trading Signals at DailyFX+, here is a link to a video with an explanation of this resource:
Trading Signals at DailyFX+
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.