Forex trading is extremely popular nowadays and every single day the number of retail traders in the financial industry is increasing at an exponential rate. Most of the traders are trading the live assets since the forex market offers excellent profit potential to the traders. However making profit consistently is not an easy task rather it is considered to be one of the most complex tasks in the world. If you look at the statistics then you will notice that only 5 percent of the traders are making money in the online market. If you look at the professional traders in the United Kingdom then you will notice that every single one of them is trading with the most professional brokers like Saxo since they offer excellent trading opportunities to their clients. In this article, we will discuss how to trade the trend line with the robust trading platform like SaxoTraderGO.


Figure: Excellent trading environment provided by professional broker Saxo

Draw the perfect trend line

There is saying in the forex market that the trend is your friend. The professional traders in the CFD trading industry always try to execute their orders in the market in favor of the long-term prevailing trend to reduce the risk exposure in the market. In order to trade in favor of the long-term prevailing trend, you need to learn how to draw the perfect trend line in the market. Most of the novice traders in the forex market draws faulty trend line by using the smaller time frame and thus losses money in their trade. So when you draw the trend line in the market make sure that you use the higher time frame. As a professional trader, you should also remember that in order to draw a valid trend line in the market you need a minimum of three connecting points.

Use the price action signal

Price action trading strategy is considered to be one of the most profitable trading strategies in the world. If you want to become a profitable trader in the CFD trading industry then make sure that you learn the basic price action candlestick pattern in the market. It’s true that it will be a little bit difficult for you to learn the basic candlestick pattern in the market but you can make it easy by learning the reliable candlestick pattern. Once you learn the basic candlestick pattern in the forex market try to trade the trend line using the highly reliable candlestick pattern. Trading the trend line using the price action confirmation signal is extremely profitable but it’s highly imperative that you follow proper risk management factors in every single trade.

Fundamental factors

Fundamental factors are very important for the forex traders. In the eyes of the trained professional fundamental news release are often considered to be the most powerful price driving catalyst in the forex market. However, most of the novice trader ignores the power of fundamental analysis in the forex market while trading the trend line in the market. But in order to secure the best possible trades in the trend line, you must do the fundamental analysis in the market. If you do the fundamental analysis in the market you can easily measure the trend strength and even identify the trend reversal in the market.

Summary: Trading the trend line using price action confirmation signal is very profitable in the forex market. But when you trade the trend line in the market make sure that you do the fundamental analysis since it will allow measuring the overall strength of the trend. Though the system is extremely reliable but yet you should always use proper risk management factors to reduce the risk exposure in the market.

 

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