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following the trend

  • #1
  • First Post: May 27, 2007 5:39pm May 27, 2007 5:39pm
most forex traders advice that it is best to follow the trend no matter what .but then you see a market that has risen too far up and you're tempted to speculate an imminent fall but then the trend is still up.
Today for instance is a holiday in some markets and the widespread opinion is that there would be thin trading. Wouldn't the thin trading follow the trend?
Even in the event of a news pushing the market, would it be wrong to assume that the trend would still prevail when the market becomes calm form the news?
What exactly do someone do???????????
  • #2
  • May 27, 2007 6:11pm May 27, 2007 6:11pm
Quoting esmondy
most forex traders advice that it is best to follow the trend no matter what .but then you see a market that has risen too far up and you're tempted to speculate an imminent fall but then the trend is still up.
Today for instance is a holiday in some markets and the widespread opinion is that there would be thin trading. Wouldn't the thin trading follow the trend?
Even in the event of a news pushing the market, would it be wrong to assume that the trend would still prevail when the market becomes calm form the news?
What exactly do someone do???????????
first you have to realize that the trend is all relative to the timeframe you are trading on. I would not suggest trading at all today because of the thin volume, period. but if you insist on making a trade, then I cannot stop you, its your money.
  • #3
  • Last Post: May 27, 2007 6:23pm May 27, 2007 6:23pm
Quoting esmondy
most forex traders advice that it is best to follow the trend no matter what .but then you see a market that has risen too far up and you're tempted to speculate an imminent fall but then the trend is still up.
Today for instance is a holiday in some markets and the widespread opinion is that there would be thin trading. Wouldn't the thin trading follow the trend?
Even in the event of a news pushing the market, would it be wrong to assume that the trend would still prevail when the market becomes calm form the news?
What exactly do someone do???????????
If you look at the GbpUsd high of April 18 and see that it has gone down. Yet what is moving the market. Looking at the charts you would say strong USD. But in reading currency analysis how many times have you read strong dollar. News always plays a part but there is more that moves the currencies then just news. Not sure how these big hedge funds work but it seems like when they expire they are going to sell or buy almost no matter what. Been wanting to go back and look at each 4hr candle/bar and compare it the move to the news and see if it really has effected the over all trend or just caused a bump in the road. Have not had time.
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