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Forex Trading Strategies: Which trend should I look?

Written by:

Ezekiel Chew

Last updated on:

January 29, 2024

Forex Trading Strategies: Which trend should I look? The long term or short term?

Forex Trading Strategies
I believe that this is one of the most important and mind boggling question that most traders face.
Forex trading strategies Example: Forex Pair Eur Chf

In the forex pair above, the overall trend is in a downtrend (marked by the red line)But in the current movement it is in a short term uptrend (marked by the yellow circle)So to say if you are in the current situation – which happens all the time.
Forex Trading Strategies -> How would you trade?
Forex Trading Strategies -> Would you trade up or down?
Forex Trading Strategies -> Would you trade with the main down trend or the short term up trend?

Forex Trading Strategies: Which trend should I look? The long term or short term?

Generally speaking, of course, the bigger trend holds more weight right? So should you still trade down?.. Not really…Although it is the bigger trend that holds more weight, it is the short term current trend that depicts its movement. The main question lies in what kind of trader are you.
– If you are the type who wants to trail for the long run. Then you should wait for the trend to turn back down and then trade down.
– If you are like me, who takes profits off the table with a reasonable risk-reward ratio. Then we will trade the current short term trend.

Forex Trading Strategies: Which trend should I look? The long term or short term?

You see, although the long term is down. But you should NEVER trade against the current short term trend.
Because this short term may turn to a bigger trend. And this short term trend may be the indication of a trend reversal. So, if you have a good profit-taking strategy. The answer will be to trade the short term trend and not the long term trend. But of course, the best scenario is that we have the long term and the short term trend in the same direction. It happens, but it does not happen all the time. So in scenarios like the above chart example. I hope you have gotten your answer!

I hope you have gained something from this quick forex trading strategies trade example, Check out our AFM winning Price Action Forex Trading Course where i teach you the exact FULL Forex Trading System & Strategies that I personally use to be consistently profitable.

See you on the other side my friend,
Asia Forex Mentor
Ezekiel Chew
Asia #1 Forex Mentor
www.lifeofatrader.com
Next Intermediate Article: Why you need to look at the big picture

About Ezekiel Chew​

Ezekiel Chew, founder and head of training at Asia Forex Mentor, is a renowned forex expert, frequently invited to speak at major industry events. Known for his deep market insights, Ezekiel is one of the top traders committed to supporting the trading community. Making six figures per trade, he also trains traders working in banks, fund management, and prop trading firms.

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Forex Trading Strategies: Which trend should I look?

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Written by:

Updated:

January 29, 2024

Forex Trading Strategies: Which trend should I look? The long term or short term?

Forex Trading Strategies
I believe that this is one of the most important and mind boggling question that most traders face.
Forex trading strategies Example: Forex Pair Eur Chf

In the forex pair above, the overall trend is in a downtrend (marked by the red line)But in the current movement it is in a short term uptrend (marked by the yellow circle)So to say if you are in the current situation – which happens all the time.
Forex Trading Strategies -> How would you trade?
Forex Trading Strategies -> Would you trade up or down?
Forex Trading Strategies -> Would you trade with the main down trend or the short term up trend?

Forex Trading Strategies: Which trend should I look? The long term or short term?

Generally speaking, of course, the bigger trend holds more weight right? So should you still trade down?.. Not really...Although it is the bigger trend that holds more weight, it is the short term current trend that depicts its movement. The main question lies in what kind of trader are you.
- If you are the type who wants to trail for the long run. Then you should wait for the trend to turn back down and then trade down.
- If you are like me, who takes profits off the table with a reasonable risk-reward ratio. Then we will trade the current short term trend.

Forex Trading Strategies: Which trend should I look? The long term or short term?

You see, although the long term is down. But you should NEVER trade against the current short term trend.
Because this short term may turn to a bigger trend. And this short term trend may be the indication of a trend reversal. So, if you have a good profit-taking strategy. The answer will be to trade the short term trend and not the long term trend. But of course, the best scenario is that we have the long term and the short term trend in the same direction. It happens, but it does not happen all the time. So in scenarios like the above chart example. I hope you have gotten your answer!

I hope you have gained something from this quick forex trading strategies trade example, Check out our AFM winning Price Action Forex Trading Course where i teach you the exact FULL Forex Trading System & Strategies that I personally use to be consistently profitable.

See you on the other side my friend,
Asia Forex Mentor
Ezekiel Chew
Asia #1 Forex Mentor
www.lifeofatrader.com
Next Intermediate Article: Why you need to look at the big picture

ezekiel chew asiaforexmentor

About Ezekiel Chew

Ezekiel Chew, founder and head of training at Asia Forex Mentor, is a renowned forex expert, frequently invited to speak at major industry events. Known for his deep market insights, Ezekiel is one of the top traders committed to supporting the trading community. Making six figures per trade, he also trains traders working in banks, fund management, and prop trading firms.

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