The overriding Forex trend on this GBPCAD 4 hour time frame chart is represented by the blacktrend line. As Forex trend line resistance is moving down, it shows that Forex market price action on this Forex chart is moving down. We can also say the currency pair is in a bearish trend as it has been making lower highs and lower lows.
Within this bearish trend , there are several blue arrows that show bullish trend, up moves against the bearish trend. Even though some of these trades against the trend are strong, the overall bearish trend prevails.
Since as Forex trend traders we want to trade in the direction of the main trend, we wold ignore the trades against the main trend and only take moves to the bearish direction based on the chart above as these would be the bigger opportunity trades.
1 comments:
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