Kinds of Trend:
There are three kinds of trends:
- Bullish Trend
- Bearish trend
When the price of a certain currency increases, it is called bullish trend. As the name suggests, it is a market condition dominated by bulls.
The condition of Financial market when the price of a currency decreases is called the bearish trend. During this trend, the bears control the price and dominate the market.
The price of a currency does not just increase or decrease, sometimes it moves and shifts sideways. Such a movement is called a Flat. It is basically associated with understanding the reversal in the price movement of a currency.Flat market is the only time in Forex trading when the status of both buyers and sellers is same.During the Flat, there is no certain trend of price movement. It is considered the most crucial time for newbies as they cannot cope with it and ultimately lose their money.
One of the three major methods to understand the condition of the financial market is Indicator. Forex traders and investors use different indicators to understand the current trend and condition of Forex market.
Use of Indicator:
The use of indicator is not that much difficult. You just need to focus on it.
Wait for Trade:
If the indicator is about 0.5, it indicates that you need to wait as it is not beneficial to trade right now.
The weakening of a trend is reflected when the result is less than 0.5. You can expect a thorough change or reversal in such a situation.
Formation of a Trend:
The development and formation of trend is reflected through the greater values on the Indicator.
Flat can be reflected with more than 0.5 on indicator.