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	<title>About Forex Trading &#187; Trends</title>
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	<link>http://www.about-forex-trading.com</link>
	<description>A guide to trading Forex.</description>
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		<title>Spotting the Trend</title>
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		<pubDate>Mon, 02 Nov 2009 13:30:53 +0000</pubDate>
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				<category><![CDATA[Trends]]></category>

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		<description><![CDATA[The biggest challenge in forex trading is spotting the trend. You can be successful for sure once you know which way the market is going; you can easily ride the trend and make profits if you can read the market&#8217;s movements correctly.
There are several indicators that can be used to read trends. Using Moving Average [...]]]></description>
			<content:encoded><![CDATA[<p>The biggest challenge in forex trading is spotting the trend. You can be successful for sure once you know which way the market is going; you can easily ride the trend and make profits if you can read the market&#8217;s movements correctly.</p>
<p>There are several indicators that can be used to read trends. Using Moving Average (MA), RSI, Moving Average Convergence/Divergence (MACD), and several other technical indicators can help you spot and read trends although sometimes reading trends may be a bit more complicated. The simplest way is to start with different MA with different parameters &#8212; you can set the parameters to your need &#8212; and add RSI or MACD to confirm the overall trend.</p>
<p>However, trends may not be as easy to spot as we all hope for in certain conditions. There may be too much short-term movements that may cause spotting trends a bit more difficult to do. When you face this kind of situation, especially when your indicators are showing erratic signals that are hard to follow, switch to longer timeframe and try to discover the market trend on different and longer scale. If you are trading on a 15-minute chart, switch to 30-minute, 1-hour, or even 4-hour chart to try to read current trend.</p>
<p>Remember that practice make perfect. Develop your own trend-spotting strategy and practice reading trends on different charts and time frame to improve it. You will be able to use it to your benefits, and it will be easier for you to make profitable trades in the future.</p>
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