Finding the direction of the major trend is not all hard. The naive traders always find a simple way to make things super complicated. But if you look at the skilled traders you will realize the importance of using an easy method to find the direction of the market trend. Few indicators tell the traders about the direction of the major trend. But this is not going to work if you consider trading as your fulltime profession. You need to learn the manual way to find the market movement in the higher time frame. Though there are many techniques, we are going to give you some amazing tips that can help you to find the direction of the major trend with a high level of accuracy.
Use the daily or weekly time frame
You need to use the daily or weekly time frame to find the direction of the trend. If you analyze the lower time frame data, chances are very high you will end up by trading the major retracement. But when you switch to the higher time frame data, you will be able to analyze the bigger picture of this market. Things might be hard at the initial stage but with some proper steps, you can easily master this skill. Open a demo account with Rakuten so that you can learn to trade the market without losing real money.
The demo account is considered the best place to learn the art of trading. Things might be hard at the initial stage but once you get used to the demo environment, you can easily predict the direction of the price movement in the higher period.
Learn to use the trend line
Learning to use the trend line is one of the key arsenals to make a profit via the trend trading method. Though the term Forex trading Australia is very popular, still the majority of the traders don’t know the perfect way to draw the trend line. You must use a minimum of three higher lows to draw the bullish trend line. On the contrary, connect three lower highs in the market to find your desired bearish trend line. Things might be hard at the initial stage but once you learn to trade this market with discipline, it won’t be a tough task to draw the trend line with a high level of accuracy.
Analyze the major news
Analyzing the major news is one of the most effective ways to predict the direction of the trend. At times the long term market trend might get change due to high impact news release. But this should not bother you if you manage to learn fundamental analysis. Many naïve traders avoid analyzing the news factors but this is a very big mistake. If you want to succeed at trading, make sure you are not breaking the rules at trading. Learn to deal with the major news so that you don’t have to deal with sudden spikes or trend change.
Trade with price action
If you manage to learn price action trading method, things will be easier when it comes to trend trading method. Most of the naïve traders find it hard to analyze the major trend since they always trade the market with indicators. Indicators are nothing but a helping tool that allows you to analyze the quality of the trade signals. Once you learn to analyze the major trend with a high level of accuracy, you can easily find some great trades.
Forget the fact, you are trading the most volatile market in the world. Focus on the price pattern and trade the key levels. Just with the help of the different formations of the Japanese candlestick, you can easily find the direction of the trend. So, learn more about price action trading method so that you don’t have to worry about the direction of the trend.