A trading trend is an implied trend of financial markets over a certain period of time. Trading tendencies can be long-term or short-term in duration. These trends are generally classified into two categories as secular for longer time periods and primary for shorter time periods. Secular trends are essentially the rules of thumb, which indicate where the trend will go next. On the other hand, primary trading trends are more volatile and are based on the indicators of fundamental factors. When we talk of primary trading trends, the focus is more on the fundamental factors than anything else.

If the trading trend is moving up, then chances are traders have bought shares with anticipation of further gains. The traders use leverage to attain higher price than their actual position. To achieve positive returns, it is advisable to buy shares at higher prices. This results in higher profits.

While buying and selling have more importance in determining current trends, there is still some trading theory which suggests that traders should not trade against the current trend. Trading against the current trend has high losses. Although some of the strategies may work, they will not be as effective as when traders take a long term view. Long-term trading helps traders identify when the market has reached a support zone, at which the market will likely not move against the trader’s moves.

Trading strategies based on counter-trend trading to try to buy and sell against the continuation of the current trend. This strategy is considered less risky than the counter-trend trading strategy because the profit potential is limited. This is so because the price level is more likely to revert back to the higher level than to continue on the declining trend. When traders decide to trade counter-trend, they should know that they have to pay extra premium to get the same premium as they had when trading in the current trend.

Trend lines, also known as rectangle charts, are used extensively in Forex trading. Trend lines help traders to establish the price target for the Forex market. If traders want to use the moving averages or oscillators for determining the Forex trading trends, they may also use the trend line. Trend lines help traders determine the opening and closing prices for the Forex market. The size of the triangle, which is used to determine the trading trend, is equal to the width of the largest moving average.

Most trend traders focus on the short-term direction of the price, so the size of the triangle is also referred to as the swing-axis. In order to have a better understanding of the Forex trading strategies, it is necessary for traders to learn how to use other types of charting such as the moving average convergence or the MACD. Trading the Forex market is similar to trading any other financial market; however, the speed and number of trades can be much larger than in other markets, and there are more opportunities for long-term investors. To be successful, long-term traders must learn the fundamentals of Forex trading, including the definition of Forex trading indicators, trading strategy and the importance of charting.