FX Trading Operation Room｜Episode 12: Two Formats for Chasing Trends [FX攻略.com Editorial Department]
From the position of publishing the nation's only monthly FX information magazine, the aim of this project is to extract mistakes and common misconceptions that many traders tend to make and share them with you. This time, we would like to consider “two types of trend following.”
【FX Trade Strategy Room [FX攻略.com Editorial Department]】
・Episode 1: League Matches and Tournament Matches
・Episode 2: Before you start scalping
・Episode 3: Upgrading FX skills
・Episode 4: Effectively utilizing various order methods
・Episode 5: About seeking the holy grail of FX
・Episode 6: Technical indicators are not all-powerful
・Episode 7: In FX, range-bound markets are the normal mode
・Episode 8: Have you verified before demo trading?
・Episode 9: Do you need many screens for FX trading?
・Episode 10: Why can’t you win with know-how alone
・Episode 11: Why people cannot cut losses
Table of Contents
1. A temporary break or entering after a breakout
2. With a steady rhythm, you can target larger price moves
3. You can pre-schedule new entries
4. Do you know two types of trend following?
A temporary break or entering after a breakout
In FX, one of the most important concepts is trend following. Riding the current trend to gain profit is something that anyone who has studied a bit knows. However, while it sounds simple to say you ride the trend, what exact strategy should you use to ride it?
Riding the trend means buying when prices are rising and selling when they are falling, but the timing of the trades is crucial.
Trend following ultimately comes in two patterns: “buying on dips and selling on rallies” and “breakouts.”
And, to start with, there is no fundamental superiority of one over the other. Each has its own advantages and disadvantages, and there are markets where each performs well or poorly. Therefore, rather than narrowing down to one, it is recommended to become proficient with both.
