If you are looking for forex trend indicator to help you identify the trend, you must be a good trader. This is because a good trader must always be looking for ways to trade according to the most current forex trend as it is the most profitable to trade and the safest to trade.
Here are a few forex trend indicators that I use to identify the forex trend before I embark to do my other technical analysis:
1) Moving Average Crossover Technique: This is always the first way I use to do my forex trend analysis, I will always plot a 50 EMA together with a 200 EMA showing them in different colours. What I look for is the crossover of the 50 EMA to the 200 EMA. If the 50 EMA is cutting down the 200 EMA, this is what is called the Death Cross. A Death Cross signifies that the forex trend is a downtrend and you should be looking for ways to trade short. If the 50 EMA is cutting above the 200 EMA, this is known as the Golden Cross and this usually signifies that the forex trend is an uptrend and you should be looking for ways to trade long.
2) Forex MACD: Another way I use to verify the trend I have identified using the moving average crossover is using MACD. If the MACD and the trigger line is above the waterline, I will consider it as a indication of an uptrend. If the MACD and the trigger line is below the waterline, I will consider the forex trend as a downtrend.
With the confirmation of the forex trend using these two tools, I will then look for ways to enter a trade based on the trend. Always remember to ride the trend to profit!
If you are getting contradicting signals from these two tools, I strongly suggest you to avoid entering any trade as sometime “No trade is a good trade”
To further help you to improve your trading profit, I have decided to post my forex trading signals on this blog to share with you my analysis of the market.
