Is the trend really your friend ?

[EURUSD]

As I mentioned earlier, how many pips you can profit from a trend if it moves 150 pips? You are good if you can take 50% out of the 150 pips move. But how far to put between your Entry Price and Stop Loss consider profitable in this range of trading area? 50% out of 150 equals 75 pips, your maximum of Stop Loss should be only 30 - 35 pips to achieve a good Reward Ratio. If more than that, the trend is no more your friend.

There is long-term trending movement and there is short-term trending movement so if the trend has moved 150 pips for today, as example. If the trend is long-term trending so it is possible that the next day will continue the previous day direction. But if the trend is not long-term trending so it is possible that the price is moving in sideways condition or moving reversal. So, it's not always trending movement ending in a day or 2 days or several days only, traders need to know tendency for market's movement as long-term.

 

[Froso@FXNET]

Yes but only if we really understand how to spot it instead of going with wrong trend and then blaming it.

Well but there are certain time the trend really hard to read and in such moment we will face unpredictable the movement of trend and even usually trend will not be friend always , so need to observe for more times when the trend be friendship and not anymore

 

[downtrend]

Trending pairs are the most attractive pairs for a trader. Pairs that in a range are not greatly traded as its hard to keep your positions on such pairs.

 

[stephane]

Trending pairs are the most attractive pairs for a trader. Pairs that in a range are not greatly traded as its hard to keep your positions on such pairs.

Unless you know it is a range and trade it accordingly, from resistance to support and from support to resistance.

 

[iMusingKiMi]

Many people love to trade ranging breakout where they consider and try to ride the trend as earliest as possible. But they don't know actually breakout of trend are not profitable to trade at all. 8 out of 10 times they try to shake you off.

 

[Whitesnake]

Certainly trend is our friend until it end. It is very much critical for the traders to always make sure that they identify the trend at the right level such that they are neither too early nor late for entry. Always looking at the higher time frame is helpful in avoiding fake signals.

 

[iMusingKiMi]

There is long-term trending movement and there is short-term trending movement so if the trend has moved 150 pips for today, as example. If the trend is long-term trending so it is possible that the next day will continue the previous day direction. But if the trend is not long-term trending so it is possible that the price is moving in sideways condition or moving reversal. So, it's not always trending movement ending in a day or 2 days or several days only, traders need to know tendency for market's movement as long-term.

Yes, but how many trend that doesn't try to shake trader off? Trading trend especially breakout are just like riding a rodeo bull, goes up 50 pips, come down maybe 40-50 pips before going on further. If a trader kept reminding himself trend is their friend, it will kills them instead of helping them. If trend is your friend exist in trading, there are no 90% of failure trader anymore.

 

[Pharaoh]

Yes, but how many trend that doesn't try to shake trader off? Trading trend especially breakout are just like riding a rodeo bull, goes up 50 pips, come down maybe 40-50 pips before going on further. If a trader kept reminding himself trend is their friend, it will kills them instead of helping them. If trend is your friend exist in trading, there are no 90% of failure trader anymore.

Grabbing a breakout is different from a short-term hookup with an established trend. Breakouts are like trying to date someone who just broke up. There's a good chance of a change of heart and you get left out in the cold.

For a normal trend, remember that the trend is just a casual friend, not a spouse, and not even a friend with benefits (although, if you are VERY lucky, a 1 or 2 week fling can happen on rare occasions ). After awhile, your friend the trend may decide to go off in a different direction. If you try to hang on and hope your friend goes back to what the two of you were doing, you'll be sorely disappointed. So, when your friend the trend says "I've got to go", then smile, say "It's been fun. Hope to see you again soon", and let your friend the trend head off elsewhere.

 

[downtrend]

Certainly trend is our friend until it end. It is very much critical for the traders to always make sure that they identify the trend at the right level such that they are neither too early nor late for entry. Always looking at the higher time frame is helpful in avoiding fake signals.

Trading with the major trend will limit your losses to great extend. Don't try to trade counter trend, instead go along with the trend and if it ends, you will only lose one time.

 

[Froso@FXNET]

Certainly trend is our friend until it end. It is very much critical for the traders to always make sure that they identify the trend at the right level such that they are neither too early nor late for entry. Always looking at the higher time frame is helpful in avoiding fake signals.

You are right , but as reality we will know how far the trend will forms and when the trend will reverse and also when the price just retrace , this is hard to read exactly for traders make the trends to be friends