SigmaForex Market

There is a common expression known by traders; “the trend is your friend…until it bends”. If all you were to do was to get good at identifying trends, in any time scale, and know how to trade them then you will inevitably make substantial profits.When you understand the basic fundamental principles of how the Forex market prices moves then all else are just applications of those basic principles”. Prices of course move based on market sentiment resulting from news and world influences, but as technical analysts we are generally not concerned with that perspective (fundamental analysis). The basic fundamental principle of how the markets move, from a technical perspective, is that the market moves in an oscillating fashion (bouncing in waves) while gravitating in a certain direction (up, down, or sideways). ALL trading methodologies are simply applications aimed to capitalize on the understanding of that above stated fundamental principle.Simply put, trend lines show the confined range of oscillation as the markets gravitate towards a particular direction. When the trend line breaks it is a chance to reevaluate the direction of the oscillations.

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