Forex Ascending trend

A trend is a tendency for prices to move in a particular other direction over a period. Trends can be long term, short term, upward, downward and even sideways. Success with forex market investments is tied to the investor's ability to identify trends and position themselves for profitable entry and exit points. This article examines the stages of a forex trend and how they affect investors.

Economic Trends Reflected in Currencies

For the most part, an economy that is strong will also have a strong currency. Economic strength attracts investment, and investment creates demand for a currency. The demand for gold as an alternative to fiat currencies has led to a currency demand in those countries that produce gold such as Australia, South Africa and Canada.

Trend in forex and currency trading Ascending trend channels are a useful tool due to their ability to predict overall changes in trend. As long as prices remain within the ascending trend channel, the upward trend in price can be expected to continue. As soon as prices exceed either trendline forming the channel, however, a strong signal either to buy or to sell is generated. A break through the upper trendline generates a strong buy signal, while a break through the lower trendline generates a strong sell signal.

(source:wikipedia)