Hi, I'm quite new to forex trading and would like to ask about ranging and trending market.
The glossary posted in the Rookie section defines trend as "price movement that produces a net change in value. An uptrend is identified by higher-highs and higher-lows. A downtrend is identified by lower-highs and lower-lows", while the definition of range is "no net change in price, or equal highs and equal lows".
From reading various threads on on FF, there seems to be general beliefs that the market ranges more often than it trends. However, I had a look at daily and weekly charts for EUR/USD and GBP/USD for the past 10 years and from just looking at them, you can definitely see that most of the time, the price is either going up or down ie trending. This is even clearer when we use monthly charts. So wouldn't it be the case that the market trends most of the time? Would like to have some inputs so I can incorporate this concept into my trading. Thank you...
The glossary posted in the Rookie section defines trend as "price movement that produces a net change in value. An uptrend is identified by higher-highs and higher-lows. A downtrend is identified by lower-highs and lower-lows", while the definition of range is "no net change in price, or equal highs and equal lows".
From reading various threads on on FF, there seems to be general beliefs that the market ranges more often than it trends. However, I had a look at daily and weekly charts for EUR/USD and GBP/USD for the past 10 years and from just looking at them, you can definitely see that most of the time, the price is either going up or down ie trending. This is even clearer when we use monthly charts. So wouldn't it be the case that the market trends most of the time? Would like to have some inputs so I can incorporate this concept into my trading. Thank you...