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  • Help from Trend


    Following trend is more than just a strategy, you don't just watch it move slowly and do nothing. One of the most important thing to do about it is to make sure that you are riding the trend and trade not against it. It is jsut easier to go with the flow of the market be confident that your track record will greatly improve upon analysis of the trend presented to you in real time.

  • #2
    It is like a strategy that is similar to "GO WITH THE FLOW!" Trying to make a better analysis on how you perceive the market movement is how you make and end your trade. Try to be bullish if the stock has a bullish movement while try to trade in a bearish way if the movement is with a bearish characteristic.

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    • #3
      Following the trend is particularly helpful with binary trading, the more you try to look and observe it the more you will likely to predict the outcome of every trade you make.

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      • #4

        The very common way to identify a trend on a chart is by using technical indicator called ‘moving average’. This works out the average rate of price change over the selected time period. Let us take for example, the 10 day moving average works out the rate of price change over the last ten trading days, the 20 day moving average over 20 and so on.

        The two most commonly used forms this indicator are known as the ‘Simple Moving Average’ (SMA) and the ‘Exponential Moving Average’ (EMA). These use slightly different calculations to work out the rate of price change. For Binary Options trading I tend to use the EMA as it provides a greater weighting to the the most recent price change in the calculation. However there is little practical difference between the two given the time-frames involved.

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        • #5

          I can not solely agree with the "trend line" you are suggesting because primarily of one reason, it is hard and difficult to create a drawing trend base on the results in the stock market. I think it is better to us MAs of course with fibs is much better combinations to use.

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          • #6
            Major Market Forces (Investopedia)

            Learning how these major factors shape trends over the long term can provide insight into why certain trends are developing, why a trend is in place and how future trends may occur. Here are the four major factors:

            1. Governments
            Governments hold much sway over the free markets. Fiscal and monetary policy have a profound effect on the financial marketplace. By increasing and decreasing interest rates the government and Federal Reserve can effectively slow or attempt to speed up growth within the country. This is called monetary policy.

            If government spending increases or contracts, this is known as fiscal policy, and can be used to help ease unemployment and/or stabilize prices. By altering interest rates and the amount of dollars available on the open market, governments can change how much investment flows into and out of the country.

            2. International Transactions

            The flow of funds between countries impacts the strength of a country's economy and its currency. The more money that is leaving a country, the weaker the country's economy and currency. Countries that predominantly export, whether physical goods or services, are continually bringing money into their countries. This money can then be reinvested and can stimulate the financial markets within those countries.



            3. Speculation and Expectation
            Speculation and expectation are integral parts of the financial system. Where consumers, investors and politicians believe the economy will go in the future impacts how we act today. Expectation of future action is dependent on current acts and shapes both current and future trends. Sentiment indicators are commonly used to gauge how certain groups are feeling about the current economy. Analysis of these indicators as well as other forms of fundamental and technical analysis can create a bias or expectation of future price rates and trend direction.

            4. Supply and Demand
            Supply and demand for products, currencies and other investments creates a push-pull dynamic in prices. Prices and rates change as supply or demand changes. If something is in demand and supply begins to shrink, prices will rise. If supply increases beyond current demand, prices will fall. If supply is relatively stable, prices can fluctuate higher and lower as demand increases or decreases.

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            • #7
              If you follow the trend it doesn't necessarily follow that you are going to end up a good trade that is favorable to you. Whilst it is not also advisable to just ignore the trend you have right in front of you.

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              • #8
                Such a good info.. thanks for sharing it I like to try trading business..

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