Friday, June 13, 2008

Sideways sigma Forex Trading Trend Strategy - Waiting for a Turn

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As mentioned in our Forex trading trend guide, sideways trend lines are seen as horizontal lines, that occur in between drops and rises in currency price.

Forex trading sideways trends are a good entry point for investors, because they are stable places where the currency price behaves steadily, on a relative perspective of course.

Sideways trend lines cannot continue for a long time, and it is a good advice to try and estimate where exactly the currency is going to go next. Following this Forex trading courses can help you pin point when a sideways trend is going on and invest more wisely.

A Forex trading sideways trend can nevertheless last for days and weeks. This period of time is considered congestion, and after this period of congestion there usually occurs a rapid rise or drop in the currency price. Another thing you should know is that the direction that a currency price continues after a Forex trading sideways trend is usually the original direction that presided before the sideways trend took place.

Using the right sideways trend strategy means figuring out the following direction of the trend by seeing the previous market direction history.

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