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Friday, December 17, 2010

Types of Trends

The direction of the trend is absolutely essential to trading and analyzing the market. In the Foreign Exchange (FX) Market, it is possible to profit from both UP and Down movements, because the buying and selling of one currency is always linked to another currency e.g. BUY US Dollar SELL Japanese Yen.


Up Trend

As the trend moves upwards the US Dollar is appreciating in value.

Down Trend

As the trend moves downwards the US Dollar is depreciating in value.

Sideways Trend

Prices are moving within a narrow range (The currencies are neither appreciating nor depreciating)

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