Forex eBook

Trend vs. No Trend Which Technical Indicators to Use Forex eBook


Trend vs. No Trend - Which Technical Indicators to Use Forex eBookIf “the trend is your friend,” what happens when there is no trend? This is more than just a rhetorical question, since markets tend to move sideways much more frequently than they trend.

For example, currency markets are particularly well known for long-term trends, which are in turn caused by long-term macro-economic trends, such as interest rate tightening or easing cycles. But even in currency markets, historical analysis reveals that trending periods only account for about 1/3 of price action over time, meaning that about two-thirds of the time there is no trend to catch.

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