GBPUSD Weakening But For How Long? Most markets and sectors, which make up the economy, are influenced by heavy technical analysis chart pattern recognition forex. For example, in the luxury goods market, consumers are interested to buy quality goods such as Louis Vuitton or Mont Blanc which is developed as their preferences build up to buy quality and luxury goods.
There are many ways to analyze and predict the market such as technical analysis as the decisions investors make would be based on the charts where it tells you when to buy or sell. A particular trend can not only tell you when the market is continuing in a particular direction but it also might give you indication for reversals and breakouts. But the main guideline or concern for traders in a Trend following strategy is to know at what price to enter the trade to benefit from the trend. Traders who might use such kind of strategies might enter in a trade using trend following strategies but might be possible that the trend would already been finished. For starters, I have attached a chart clearly showing the bearish trend and flowing in a downward channel. To use this type of trend trading strategies, the market should create higher highs and higher lows at least 2 or more than 2 times for recognizing an uptrend pattern and vice versa for a downtrend pattern.