It is already a very obvious fact that being able to ride on the Strong Trending currency pair in the forex market…

The rewards ( Profits ) that one can achieve is indeed Very Very Good….

But how good is good then ?

2x…..3x…..4x…or even 8x Your initial investment is very realistic once You know how to do it…..

……And most importantly - Knowing how to detect such STRONG TRENDING currency pair is the key here….

Like This :

With a STRONG trending currency pair like the one above…

Imagine if You invest just 1 standard lot……and by nailing 800 Pips from such Strong

Trend…..do You know what is Your ” rewards ” like ?

Yes…..that would be about 8 times MORE THAN Your initial investment.

Which calculated to be approximately USD $8,000 with $1,000 investment..

Or what most investor like to consider it as ” 800%” RETURNS….

Definitely Very Profitable once You know how to detect such STRONG Trending currency pair too - Which is what I am about to show You in this article. * smile *

HOWEVER….Most Traders Would FAILED Miserably :

Here’s why ..

Almost every traders who jumped into this forex trading game would have heard of this sentence :

” Trend if Your Friend……Just Follow The Trend ! “

…..at some point during their learning journey….

I am sure this sentence is very easy to understand by anyone as long as he/she understands simple English…..agree ?

BUT……how come majority of the traders only failed miserably and always NOT getting the results ( massive pips ) they truly desire …?

Or…..if they are lucky to jump into one such trend…..but most of the time, the trend just DID NOT move as much as they would like it too…..and ONLY to see all the profits accumulated earlier given back to the market when it rebound the other way…

Hmmmm…..what is the main problem here now…?

Are You also facing such frustrating problem currently or previously…?

That is - You would like to ride on the MASSIVE Trend in the market…..because You know the rewards are very good…..and best of all….it requires very little time on Your part to monitor  because You would be trading on the bigger time frame…( daily chart )

At most spend about 10 - 15 minutes to monitor each day….that’s it..

That is one of the biggest and most attractive benefit from riding such MASSIVE TREND in the market……no doubt about it….

But what’s the main key to succeed with Spotting Such Strong Trend then ?

And I would say…..it is about ZOOMING in on the ” Really Strong Trending ” currency pair…..in order to ride on those MASSIVE PIPS….and not just seeing a WHIP SAW market giving You undesirable fear and uncertainty…..

……making You want to pull out Your position most of the time…

The truth is that being able to scan for such STRONG TRENDING currency pair in the market can be considered rather ” tricky and challenging “ to most traders in fact…

As such, they would rather not do it…..although in the bottom of their heart….they really want to profit from such lucrative strong trend very much….

If You are also facing such confusions but at the same time, You are also one of those that would like to know how to scan for such Strong Trending currency pair to ride on….

Then read on as I am sharing the step-by-step explanations below.

There are in fact a few techniques I am using to scan for such strong trends…( without using any fundamental or reading complicated news….)

And today, I would be sharing on one such technique which is direct and very simple and yet fulfill the objective of spotting such strong trend You would like to profit from.

Here’s How You Do It :

In order for You to gauge ” How Strong ” is the currency pair….

We would be using 2 EMA to help with the tasks namely…

200 EMA   ( Turquoise )

30 EMA  ( White )

And all the charts we would be using are the DAILY time frame ONLY….

what You would want to find out is very simple…

Basically You would be comparing 2 different currency pairs and then grab the ” hints ” from there..

Example :

Let’s say the EUR/USD is in a very Strong DOWN-Trend…

At the same time…..the USD/CAD is in a Very Strong DOWN-TREND As Well..!

What does this tells You if You put the EUR/CAD together ?

Of course the pair EUR/CAD would be in a very ( very STRONG ) DOWN-TREND too right ?

Why so ?

Let me explains on this to help You understand better :

You see…..

When EUR/USD is in a strong Down-Trend ( daily chart )…..it means that the USD is Stronger than the EUR right ?

When You SELL EUR…..and BUY USD….it resulted in a DOWN-TREND..

At the same time…..You also spotted that USD/CAD is in a very strong DOWN-TREND too…

So it also means that USD is not WEAKER than the CAD…

Wow…..do You get the ” Obvious HINT ” here already ?

The CAD is so much STRONGER than the EUR….!

And if You pair the EUR/CAD together…….what would be the TREND like ?

See it for Yourself below ! * Smile *

See how strong the DOWN-TREND is now for the EURCAD from the illustration above ?

See how steep the gradient is for the 2 EMAS….?

POWER isn’t it….? * smile *

Now You understand why the conventional saying of : ” TREND is YOUR Friend…..Just Follow The Trend ” holds TRUE for so many decades !

So basically to make Your scanning easier…

You should inter-scan 2 or 3 of the different currency pairs with ” One Common ” Currency in there..

Maybe for a start….You can start with the USD…..since it is the most commonly traded and liquidity is very good.

You can compare for example :

” Gbp/Usd….Aud/Usd….Usd/Jpy…Eur/Usd….etc….etc…”

And then deploying the same technique of comparison just like how I did for the EUR/CAD above earlier…

Once You have gotten one such pair which You think would be TRENDING strongly…

You can then open up the chart….and plot the 2 EMAS ( 200  and 30 ) on it to see how steep are the 2 lines…

Most of the time…..if You see them as steep as the EURCAD example above…

You can almost sure that this is one currency pair that is TRENDING strongly…

And the next thing You need to do is of course to ride on it and grab the MASSIVE PIPS out of it…

But of course, You cannot simply just jump in and hope that everything would be fine end of the day..

There’s always a slight possibility that the trend would reverse or RETRACE quite abit before resuming in the prevailing trend again…

So making sure that it is giving YOU a good RISK/REWARD ratio is definitely essential here.

And of course….in order to reduce Your risk to a minimum….it would be good to enter into a position after the market has retraced to at least the 50% level or slightly more at 61.8%..

In this way…..at least You can grab more Pips because You are not selling at the bottom….but rather at a much higher price…..( if it is a down-trend….and vice-versa for Up-trend )

Simple isn’t it this technique on scanning for Strong Trending Currency Pair ?

Go give it a try on a DEMO account on the next trading day….and get more confident with such scanning…

Trust me when I say this :

…..By the time You can confidently ZOOM in on such ” Very Strong Trending ” currency pairs too….nailing those MASSIVE Pips in the market ( 200,300, 400 or even 800 Pips ) would not be a challenge to You anymore then….* smile *

Can You imagine how Your trading account would be GROWING then ….? LOL

How About Earnings Like This ?

( click to enlarge )

Yes…..this is the real screen shot of the earnings proof from ” Shorting ” the EURCAD…

( which is one of the LIVE trade I had )

Don’t get me wrong here…..as I am not trying to brag or something by showing this earning proof….

But rather….I would like to convey that fact that nailing such MASSIVE PIPS ( such as 659 Pips ) in indeed very realistic and NOT a challenge to me anymore as I understand how to spot for such Strong Trending Currency Pair…

Don’t believe that it can be done using the simple & proven technique I revealed above ?

Try it and You will know the truth ….! * smile *

” How You can determine the Forex Trend More Accurately ! “

As trader, You and me know that as long as we are on the ” right ” trend…we can ride on it and grab some nice Profits..

However…most traders ( not just beginners ) are still struggling with identifying the ” right ” TREND to trade most of the time..

It might seem as simple as these :

“…It is an Up-Trend now….I shall BUY ! ”

“…It is an Down-Trend now…I shall SELL ! “

” …It is Sideway now….I shall BUY when Price is at next Support!”

These 3 sentences indeed seem very Simple for anyone to understand…

BUT !

Why is it that most traders are still struggling to even make ” Consistent ” Profits…week after week…month after month then?

Even till the extreme that due to their past ” failures ” …

They have developed a FEAR to enter into the market although the TREND is Obvious…

And as such….these traders would always end up ” Hesitating ” and having too many in-decisive thoughts before entering into a position..

What’s the ” Negative ” result of this FEAR ?

They would ” miss out ” on those good trading opportunities and when that happen…they feel ANGUISH & tend to want to enter the market ON IMPULSE….

With this….it started a very vicious trading cycle & mindset…and the consequence is normally NOT WORTH IT after all…

Recently one of my reader wrote in to me asking about this same problem about identifying a ” Trend ” in the forex market..

She wants to know is there any ” Simple & Safer ” way to determine the Forex Trend more accurately so that she can trade confidently without feeling so ” hesitant or fearful “….

Here’s the exact question from this lady to share with You :

——————————————————————————————————————–

QUESTIONS :

——————————————————————————————————————–

” …Hey Aaron, I have been following your forex tips & newsletters all these while and I really learn a lot from these tips. This is especially so when it is coming from a trader’s real experience..

I have a problem that I have been facing and struggling to overcome but without much success so I thought of dropping you an email seeking for your advice or any solution you can provide.

Here’s my problem :

I am a day trader ( intra-day ) and mainly trade using the 15 mins & 30 mins time-frame…

The thing is that everytime when I see that it is an Up-trend with ” Higher Lows & Higher Highs ” confirmation…I will enter and BUY..

But the sad thing is that out of 10 times I did this…6 would ALWAYS turn against me and hit my Stop-Loss causing yet another losing trade….again and again.

I am very sure it is an Up-trend and even my technical indicators are also showing the Up-Trend signals too..

After so many ” failures ” encountered….I am now sort of feeling FEARFUL and really VERY Hesitant everytime I spotted a trend not knowing whether to enter or not…

Hence…this resulted in me ” Missing Out ” on many good trading opportunities..

Since you are now a full time trader, I am sure with your experience and forex trading knowledge, you can give me some good advice on this.

So is there any Simple & Safer way to determine a trend in the forex market accurately ?

I am rather sick of trapping in this problem …frankly…

Looking forward to hear from you.

Once again…thank you for the tips all these while. Much appreciated !

- Auntie Lim ( via email )

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My ANSWER :

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Hi Auntie Lim….thanks for contacting me with your questions..

You are really not alone as this is one of the most common problem most traders ( including intermediate ones ) face…

Even I myself also experience such frustrating problem in my earlier years of forex trading before I go full time…

It is part of learning I suppose…but at least you are willing to do ” something ” about this problem and move on for future success…

I can tell that you are serious and motivated to be successful with your forex trading after all….keep it up ! * smile *

Although you might be feeling very confused and kind of Lost now..

But I can confidently tell you that this is actually a very easy problem for you to overcome…

Firstly…you must not fully rely on the so called ” Textbook technical indicators ” to gauge the trend anymore if you want to overcome this…

That’s because technical indicators are always Lagging BEHIND the current Price and the Patterns formed…

When You rely on these lagging indicators…you also enter into a trend later too…..which is definitely disadvantage to you.

I am very sure when the trend already started….the technical indicators would not show you the entry signal until after sometime….

And that’s lagging…

That probably explains why ” when ” you are right about the trend but because these indicators are lagging…you enter late and the market turn against you soon after…

In order for you to determine a trend more accurately…I have another 3 steps method for you too….very easy to use and proven to work.

——————————————————————————————————————-

3-Steps method to gauge the ” Right” Trend the SAFER Way :

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1)  You need to look at the DAILY time-frame for the ” Big Picture ” that’s happening CURRENTLY in the forex market now..

And if it is a Up-Trend now with the previous 2 candles’ closed also Bullish….then there’s a ” High Probability ” that it would be good to trade Up-Trend for the day!

Upon checking the ” over-all ” trend on the DAILY time frame, if it is also an Up-Trend ( this you can use moving averages to help you confirm )…then the Up-Trend ” Probability ” would be even
higher…

2)   Next….You need to switch to the 4 Hour time-frame to see is it an Up-Trend too…

If it is also an Up-trend…then the Probability is really High..

3)  Do the same for the 1 Hour time-frame…

And if it is ALSO Up-Trend…then you can be sure that the Probability is INDEED High!

This would boost Your Confidence significantly too as all the time-frames are showing the same direction….

So to enter into a BUY trade….open a position ONLY if it offers GOOD Reward/Risk ratio… ( very important ! )

Here’s why :

You might be ” right ” about the trend direction but if there’s a SPIKE ( long shadow….fake movement ) and hit your Stop-Loss causing you a losing trade…

But only to see the trend resume again after that..

You can ” re-enter ” again and since You are entering with a GOOD Reward/Risk ratio…..

You will WIN end of the day ! * coolz *

Since you are trading on the 15 mins and 30 mins time frame…

Then it is good that you follow the 3 -steps method to determine the ” big picture “…

This allows you to see the trend more clearly whereas in a smaller time frame….it is not accurate…

If the 3 time frames are NOT Inline….then maybe you can choose to stand aside and watch …

OR…

You can go and scan other currency pairs which are INLINE as there are just so many pairs for you to choose from !

Hope you are getting the whole idea now…

Lastly…..do remember what I told you about technical indicators…they are simple Lagging and not accurate..

Use Price action strategies instead and you will be glad thatyou did just like I do…

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Trading Forex and winning ” Consistently ” is indeed not hard after all I must say…

You might be thinking that because I am trading full time now and so I can confidently say this…

But do remember that I was ” once in YOUR position ” too…

Feeling LOSE and FRUSTRATED while trying to figure out how to really make ” Consistent Profits ” every month…

And one thing for sure is that as long as you have some proven trading strategies to follow…

Combined with the ” right ” trading psychology….

You can literally start with an account size with relatively small capital and build it into a rather
” BIG ” one in no time…

That’s because forex is a leverage tool…and it is VERY POWERFUL….if You know how to trade profitably.

If you are still not getting satisfactory results ( profits ) from Your current forex trading strategies….

Or even struggling to break-even every single month…

Then it is really time You treat this entire forex thingy seriously if You really want to succeed with it..

Learning Price Action Forex Strategies indeed give me tremendous trading success…and help me to grow my account exponentially..

And if you are still NOT using Price Action yet….

You’re indeed leaving a lot of profits on the table…

Why not check out the Top 3 Price Action Forex Resources that I have reviewed and also made 30+ readers saying a big ” Thank You ” to me for recommending them here :

=> http://www.forextradingempire.com/Top3ForexReview/

( You gonna love these strategies especially the #1 choice ! )

To Your FOREX Success,

- Aaron Tan ( your trading friend )