The Truth
About FOREX Trends
The Core Price Structure and Rhythm of ALL Markets!
To Successfully Trade the FOREX Markets You need to understand the Underlying Movements and Rhythm of the Markets!
The following Principles form the Cornerstone of a Consistent and Successful
Trading Methodology. There is only one major Market Cycle (or movement) in
existence. The FOREX Market can do nothing else but comply with this one basic
Market Cycle, we call it
The Market Flow Analysis Method (Pure PRICE ACTION)
There is no other Movement or Motion possible in the FOREX Markets.
The FOREX Markets do NOT move in a Random fashion.
The FOREX Markets ALWAYS move within the framework of an Underlying Market Wave. Otherwise, known as a TREND, whether it be Up, Down, or
Sideways.
Market Flow Analysis Method
(MFAM)
Three Primary Waves (TRENDS) in the FOREX Markets!
There are only Three (3) Primary Waves (TRENDS) in the FOREX Markets:
1) UP Trend A Series of Higher Highs and Higher Lows
2) DOWN Trend A Series of Lower Highs and Lower Lows
3) SIDEWAYS Trend A Series of relatively Equal Highs and Equal Lows
Identifying which Wave or TREND the FOREX Market is in is vital to Successful
Trading.
The Market Flow Analysis Method (MFAM) is based upon: the Upside Penetration of market HIGHS, and the Downside Penetration of market LOWS.
New Highs and New Lows are continuously being formed in the Markets. Therefore, Traders
must identify these important levels to help in mapping out what the Markets are most likely
going to do next.
This will help you in identifying if a market is TRENDING UP, TRENDING DOWN, or
TRENDING SIDEWAYS, at the Early Stages of the Trend and not after the fact.
Market Flow Analysis Method
(MFAM)
The UP Trend Market Flow Process
A series of New Highs (NHs) and Active Lows (ALs)
Market Flow Analysis Method
(MFAM)
LOW(Lowest LOW)
AL(Active Low)
AL
AL
MRAL(Most Recent Active Low)
HIGH
NH
NH
NH
The DOWN Trend Market Flow Process
A series of New Lows (NLs) and Active Highs (AHs)
Market Flow Analysis Method
(MFAM)
HIGH
NL
NL
LOW MRAH
AH
AH
AH
NL
(Most Recent Active High)
The SIDEWAYS Market
A series of relatively Equal Highs and Equal Lows
Market Flow Analysis Method
(MFAM)
HIGH
LOW
MRAL
An UP Trend Reversing Into A DOWN Trend
Downside Penetration of the Most Recent Active Low (MRAL) in the MFAM
Market Flow Analysis Method
(MFAM)
AL
NH
NH
HHAH
(Most Recent Active Low)
Simply being able to identify critical Lows in an UPTREND will enable you to stay
in a Trend longer and you will know with High Probability at what levels the Market
is most likely going to change directions.
NL
The UP Trend is potentially Reversing into a
DOWN Trend at the Downside Penetration of the MRAL
AL
LL
A DOWN Trend Reversing Into An UP Trend
Upside Penetration of the Most Recent Active High (MRAH) in the MFAM
Market Flow Analysis Method
(MFAM)
NL
MRAH
AH
AH
NH(Most Recent Active High)
Simply being able to identify critical Highs in a DOWNTREND will enable you to
stay in a Trend longer and you will know with High Probability at what levels the
Market is most likely going to change directions.
AL
The DOWN Trend is potentially Reversing into an UP
Trend at the Upside Penetration of the MRAH
NL
The Best Time to Trade FOREX is: When Two Markets are Open at the Same Time, and When the FOREX Market is Experiencing Higher Volatility and Volume
For example,
Sydney (Australia) and Tokyo (Asian Markets) overlap between 7:00PM and 2:00AM EST
Tokyo (Asian Markets) and London (European Markets) overlap between 3:00AM and 4:00AM EST
London (European Markets) and New York (North American Markets) overlap between 8:00AM and 12:00PM EST
What are the BEST Times of the Day to Trade FOREX?
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