Forex Market Trends

Just like anything in life, the forex market has its own trends. Although some trends are hard to spot because of the variety of currencies, there are some currencies, like the Israeli shekel (ILS), which have increased in value over many currencies. Here are the three trends a financial market can have:

The first two are well known - an up trend and a down trend. These happen when there is a clear movement of a currency to either direction. It can be in one pair or in all pairs of a currency. For example, the dollar is currently in a long down trend. To profit from an up trend, you need to buy. To profit from a down trend, you need to sell. Simple.

The third trend is sideways, or flat. This trend is the most annoying, since there is no clear movement and prices just go up and down with no clear direction. To profit from such market, you need to ride minor trends or use options. Most forex brokers will allow you to do that, and if not, ask your broker for options (make sure you know how to trade them. Options are very risky).

Good luck with your trades,
Nadav

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