Forex trend – bullish bearish and sideways markets

Traders who aim to achieve regular profits out of Forex market need to recognize the economic principles the market functions on as well the unusual characteristics of the market itself.
This article aims to describe the tendency of a market called trend. Tendency/trend depicts the general direction of a market that is followed by the fluctuations in currencies. Afther analysing, observing and estimating market trends and tendencies, a trader can open timely and profitable positions. Most of the amateur traders skip estimating market direction and open lousy positions that lead them to a series of fund losses. By monitoring the market dynamics, traders can estimate market tendencies and even their duration and so can anticipate market future movements.
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Generally there are 3 Forex trend types
1. Bullish trend is a uptrend where the lowest market prices begin to increase in a gradual manner.
bullish trend example
2. Bearish trend is a downtrend where the market prices start to decline.
bearish trend
3. Sideways trend is a flat market condition where there are no trends indicating no vivid motion of prices. When a market is flat for a considerably period of time it is usually followed by breakthrough resulting in either a bearish or a bullish trend.
sideway forex trend
‘Price’ forms the foundation of the financial markets. The outcome of any trade operation in Forex completely relies upon the price which is highly flexible and variable. Therefore prior to carrying out Forex operations, ensure that the estimated trend is updated to depict current market situation and is not some short-term price recoil movement of some opposite trend. This is a very frequent mistake made by the amateur traders who expose their funds to excessive risk.
Another mostly occurring mistake of the amateur traders is that they close positions at unsuitable times. This happens when the trader performs incorrect analysis of the market, determines false directions of market movements or completely ignores considering market trends. So a position that might have a tendency of gaining a trader profits can end up in huge losses due to closing the position at the unsuitable time. So for estimating Forex market trends, traders should utilize the various technical indicators and the analysis of the market.
In case you are looking forward to excel in the International Forex market, then abide by the significant rule i.e. the trend is your best friend.