Authorised and Regulated:
Middle East & Africa
United Kingdom
Asia Pacific
Jan 2, 2022, 7:46 PM

Forex Trends: The Secret Pro Traders Don’t Share

forex trends top secret

By Carl Paraskevas - Chief Economist

Forex trends provide the single best opportunity for forex traders to profit. Unfortunately, they can be difficult to map due to the natural ebb and flow of the market, which is a topic I discuss here in an earlier article. Whether you are a fundamental, algorithmic, or technical forex trader, being able to spot forex trends is a necessary skill to be a successful. Below is one indicator free method pros use to confirm if a market is genuinely in a trend and in what direction.

It's All About Forex Highs and the Lows

Upward forex trends are composed of a series of higher highs (HH) and higher lows (HL). Conversely, downward trends are made up of a series of lower lows (LL) and lower highs (LH). You look for the components of these series to form at the swing points: the points where price moves from impulsive to corrective and then from corrective back to impulsive.

forex trends uptrend

Each series component confirms the previous. For example, in a forex uptrend, a HH is only confirmed by the HL that follows. Likewise in a forex downtrend, a LL is only confirmed by the succeeding LH. Where possible, discount the highs and lows who’s impulse and corrective moves don’t exhibit a degree of symmetry with rest.

forex trends downtrend

No Forex Highs and Lows?

If you can't map a series of HHs and HLs (uptrend) or LLs and LHs (downtrend) then you know that the forex market in question is not trending, but is rangebound or in the process of changing trend direction. Furthermore, just because the market is trending on a short time frame doesn't necessarily mean it is doing so on a longer time frame. Trending markets across higher and lower timeframes tends to signal greater confidence that the trend will persist.

Stay tuned for up and coming articles where I will discuss in greater depth on how to use the swing highs and lows of a forex trend to your advantage and how to precisely identify when a forex trend has changed.

Start Trading and Monetize your Knowledge

Open Live account
Deposit and Trade
DISCLAIMER: All communication, messages, media and links distributed on this channel has been prepared by VARIANSE solely for information purposes without regard to any particular user’s investment objectives, financial situation, or means. The information in the publication is not an investment recommendation and it is not investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Reasonable care has been taken to ensure that this publication is not untrue or misleading when published, but VARIANSE does not represent that it is accurate or complete. VARIANSE does not accept any liability for any direct, indirect or consequential loss arising from any use of this publication. Unless otherwise stated, any views forecasts, or estimates are solely those of the author(s), as of the date of the publication and are subject to change without notice. The information provided herein is not intended to constitute and does not constitute investment advice nor is the information intended as an offer or solicitation for the purchase or sales of any financial instrument. The information contained herein has no regard to the specific investment objects, the financial situation or particular needs of any particular recipient. Relevant and specific professional advice should always be obtained before making any investment decision. It is important to note that past performance is not indicative of future results. VARIANSE is a trading name of VDX Derivatives, authorised and regulated by the Financial Services Commission (FSC) of Mauritius. FSC license number C118023323. VARIANSE is also a trading name of VDX Limited and is authorised and regulated by the Financial Conduct Authority (FCA) in the United Kingdom. FCA register number 802012. This publication is not directed to residents of the United States and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Your global trading connection

We are an award-winning, internationally regulated, trusted and secure broker.

Regulated Globally

VARIANSE is authorised and trusted internationally. We have entities regulated by the FCA, FSC and LFSA.

Multi-Award Winning

VARIANSE has achieved consistent recognition from independent organisations and the financial community.

Premium Customer Support

Take comfort in an experienced team committed to providing you with rapid, efficient, and friendly support.

Tier-1 Banking Relationships

We safeguard your funds safely and securely in segregated ring-fenced client money custodian bank accounts with Barclays Bank.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 58% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.