The fastest, easiest way to tell the trend in the forex markets.

Posted on by The INO.com Team

In today's video I'm going to share with you a wonderful way to look at the forex markets and determine which way they are headed in a matter of seconds. We'll be looking at three different cross rates and how they all correlate together in a way that I think may surprise you.

The forex markets are the biggest markets in the world and MarketClub not only covers all of them, but also covers them in real-time with pricing and charts. I hope you learn from this video and take the time to post your comments on our blog.

As always there is no charge and no registration to watch this educational trading video.

All the best,

Adam Hewison
President, INO.com
Co-creator, MarketClub

16 thoughts on “The fastest, easiest way to tell the trend in the forex markets.”

  1. Michael,

    I am not sure I can give you an exact number as we are dealing with a lot of variables like dollar/yen euro/yen etc etc. Suffice is to say that the currency markets tend to trend longer than other markets I have traded.

    This is the only way I can answer your question.

    All the best,
    Adam

  2. Commenst on Forex Video:

    I am not a member of maket club but enjoy the videos/ lessons.
    The forex video was very interesting.
    I was wondering if market club had done any work on what percentage of time forex markets trend and what percentage of time they are non trending or "choppy". Markets usually only trend for some time , maybe 40-50% of the time but perhaps forex markets trend more than this ?

    The sucess of a strategy as outlined by the video really depends up this. Some currencies may even trend more than others too.

    Thansk in advance for your response.

    Michael Kerr

  3. Adam,

    Thanks for this long term trade in the Forex Markets. I like the fact of longer trades allowing me to stay away from the computer! I do want to clarify a few items though;

    I assume that we will be in the market either long or short depending on what the Monthly Triangles are depicting. I also assume this set up is trading with 1 standard lot.

    My question is regarding the account size? Being that we will be in the market either long or short with no stops, it seems the pullbacks and corrections will result in huge drawdowns and this would require a substantial size account to allow for this to avoid margin calls? Can you please explain.

    Thanks, Randy

    1. Randy,

      Yes there will be draw downs but the winners will/should far outstrip any draw downs you experience.

      The key is to deleverage to a point where you are comfortable. Most beginning traders leverage up to the point were the smallest move takes them out of the game.

      Here is what I suggest. Look at the example we show you in the video, work out the worst case draw down and then plan for a worst case scenario like two back to back draw downs. Then if you can live with that, deleverage your trade accordingly.

      All the best,
      Adam

  4. Adam,

    Thanks for the video on the larger time frame trends in forex, it gave an interesting perspective. This is an area of trading that interests me but I am not too sure of the best way to trade forex, longer term, without sustaining the large, shorter term draw downs with the high leverage and short term swings in forex. I'd appreciate your thoughts.

    Also, a technical question. When I try to replicate your 2001-2009 chart in the Market Club charts I seem to end up with a pretty flat line. I have to zoom in to aout 2005 before I get any usable scale on the price axis. I'm not sure what I am doing wrong.

    Thanks again to you and your team for great information and thought provoking videos.

    Wishing your a very Happy Thanksgiving, Stephen

    1. Stephen,

      Thanks for your feedback.

      On drawdowns see my answer to Randy's question.

      On the problem you are have with the zoom feature contact

      su*****@in*.com











       or give support a call at 410-867-2100. I am sure they will be able to help you.

      All the best,
      Adam

  5. Adam,

    I love the idea of a long term trade. I am starting to get real tired of sitting in front of a computer grabbing pips. I would love to set this up and let it ride for months at a time, but I have a few questions regarding this method:

    I understand you will always be in the market either long or short depending on what the Monthly triangles say. . My concerns are the pullbacks (corrections) during the trend that could result in some huge draw downs, since stops are not used. What size of an account should you start with to handle the draw downs? I assume this is a standard account trading 1 lot?

    Randy

  6. Good video. You are using the weekly charts with the monthly triangles which I understand. Where would you have your stops? Also would it work using monthly triangles on the daily charts?

    1. Clive,

      Thank you for your feedback.

      On the monthly/daily triangle approach it would work and provide many, many more trades and whipsaws.

      As far as stops go it is such an individual choice that there isn't any one size that fits all. You understand that MarketClub's Trade Triangles are stop and reverse on the monthly Trade Triangles.

      You can learn more on stops here: http://club.ino.com/trading/2009/06/how-to-use-money-management-stops-effectively/#more-1465

      All the best,
      Adam

  7. Adam,

    Thanks for this video on FOREX. As this is for longer term.

    Can you make one or suggest the method for short term...of course using Trade Traingle?

  8. Hi Adam,

    Regarding this long trade strategy in FOREX, what happen with the Rollovers, it won't be too expensive to have a position open for so long?
    Would you recommend to use Forex Options, or Forwards?

    Thanks!

    Diego

  9. Hi Adam

    I am really intrigued by your latest video on currencies and am interested in something of a longer term trade.

    When looking at the video, there are a couple of times when the trade triangles seem to whipsaw.

    On the premise that
    a)$10,000 was invested in each currency over the 8 year period shown, b)100% of returns were re-invested,
    c)no further money was injected
    d)each trade triangle was acted on ie the full balance in a short trade on a bearish triangle or on a long trade on a bullish triangle

    What would be the long term result?

    Thanks

    Sean

    1. Sean,

      I am going to let you do the math. I believe that way you will have more confidence and understanding of this approach works.

      All the best and be sure to let me know what you come up with.

      Adam

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