Finding the Trend in Forex - Line method

One of the hardest yet seemingly easiest things to do is find the direction of the trend. If you correctly identify the trend, even if you have bad timing on a trade, you will likely still profit. Just like if you kick a ball up a hill, it will eventually roll back down the hill. So, how do you find the trend? There have many technical ways to find the trend in forex like is price making lower highs or high highs, or is price above or below the 200 moving average. But those methods sometimes give more confusion than actual answers. For example, sometimes 2 different time frames (like daily and weekly) can be moving in opposite directions and then it leaves you basically guessing which way the trends going. Luckily, there is a much simpler way. It's what I like to call it the "Line Method". All you do is draw a line where price action has been heading. Here's an example of the eur/usd (click to enlarge)

When traders try to find the trend in forex, they often fail to look at the big picture and where price is likely to head. 

It's also important to look at fundamental factors affecting the long term outlook. For example, right now it appears the eur has been performing poorly and the fundamental outlook (news) hasn't led me to believe that this will change at least in the near term. 

Now, probably more important is monitoring the trend. Set physical lines on your chats that would be points that make you reevaluate the direction of the trend. In the example above, you might choose 1.155, the nearest major resistance, or maybe a Fibonacci retracement from the previous major high. 

Trading with the trend in forex will greatly increase your profits -- just don't overthink which way the trend is.

See Fibonacci retracement strategy 

Using Candlesticks Charts with Binary Options

When trading Binary Options, I always use a candlestick chart when plotting price. A simple line or bar graph won't provide enough data to know when to enter a trade. Candlesticks show the movement of price over a given period of time. The color of the candlestick tells you whether price went up or down during that time period. Green and clear means price went up. Red and filled in means price went down over that time interval. Example below.

Now for how to use them. There's certain candlesticks you want to be on the look out for when trading binary options.. Candlesticks should help guide you and NOT be used as the only signal to trade. Alone, the reversal signs from candlesticks aren't very accurate. If used with Price action (as discussed in other posts) there effectiveness is much higher. Take a look at the image below.

At the start, price is moving up (indicated by the green candle). The second candle is what people call a pin-bar. It signaled that price moved up, then moved back down to where it started at that candle. If the 'wick' of the candle is on top, it's a possible sign that price will start moving downward. The 5th candle is the same thing except it signals price might start moving upward. The 8th and 12th candle are called doji's. A doji also indicates a possible reversal and is characterized by a wick on the top and bottom with little net movement in price from the beginning to the end on the candlestick. Use candlesticks as guidelines for when price might reverse in binary options. They are by no means guarantees that price will change direction.