Trend is your friend. You must have heard it too often. Swing trading trend is one of the most profitable strategies that traders use. When a trend starts, once you have made the entry, you don’t have to do a lot to manage your trade. If it is an uptrend, the price will continue to rise and in case it is a downtrend, price will steadily fall. As compared to range trading, trend trading is more profitable. Ride the trend as long as it lasts. Get this 1 Minute Forex Trading System FREE. This forex trading system is so simple that even a person who has never traded forex can make money with it. Download these Forex Scalping Cheatsheets plus 10X Scalping System and the Hot Time Indicator FREE! Learn this Fibonacci Retracement method FREE that pulls 500+ pips per trade! Get this 1 Minute Forex Trading System FREE!

The biggest risk for a swing trader trying to trade a trend lies in entering the trend when it is too late and the trend is about to end. An experienced swing trader describes this phenomenon of new swing traders trying to jump on every trend no matter how late they are as like a dao trying to chase every speeding car. Chasing speeding cars maybe fun for the dog but the dog will get run over by one of the speeding cars one day.

You should use an ADX indicator and only enter if the reading is above 20. However, in all aspects of trading nothing is 100% sure. The best thing you can do is to put the odds in your favor. You can use charts or technical indicators. Charts are much easier. Especially if you know the typical Candlestick patterns that signal a trend reversal like the hanging man and the hammer, you can know for sure that the trend is about to reverse and a new trend is about to start.

You can compare a trend to a river. It is always easier to paddle in the direction of the river! Your speed of paddling can be assisted by the speed of the current. For if the current is real strong, you can make a fortune. What this means is that trading a strong trend can be highly profitable. But how do you determine whether the trend is real strong or not? Now, if the trend is real strong and persistent, it is very likely that big money of institutional traders is at work.

Now past observations have shown that a strong trend in the forex market has a strong tendency to pullback to a key moving average before resuming the trend. There is strong evidence to suggest that in strong trends, the pullbacks to the 10 day exponential moving average makes a particularly effective entry points for forex traders. This is because the big players are using this moving average to determine their own entry points to the market.

So how do we know that this uptrend is a strong trend with big money driving the currency prices up and up? We will ue the 10 day EMA, the 20 day EMA, the 50 day EMA and the100 day EMA for determining the strength of the uptrend. The 10 day EMA should be above the 20 day EMA. The 20 day EMA should be above the 50 day EMA and the 50 day EMA should be above the 100 day EMA. In addition to that the price action should have been above the 10 day EMA for at least the lat 10 candles to confirm that this uptrend is indeed strong .

In case of downtrend, reverse the order of the EMAs. The 100 day EMA should be above the 50 day EMA. The 50 day EMA should be above the 20 day EMA and the 20 day EMA should be above the 10 day EMA. In addition to that the price action should be below the 10 day EMA for at least the last 10 candles in order to confirm that that uptrend is strong .