Trend
The general direction in which a currency pair's price is moving over time - upward (bullish), downward (bearish), or sideways (ranging).
What is a Trend?
A trend is the overall direction of price movement:
- Uptrend (Bullish): Higher highs and higher lows
- Downtrend (Bearish): Lower highs and lower lows
- Sideways (Ranging): No clear direction
Identifying Trends
Look for:
- Uptrend: Price above moving averages, making higher highs
- Downtrend: Price below moving averages, making lower lows
- Range: Price bouncing between support and resistance
Currency Strength and Trends
Our Currency Strength Meter helps confirm trends:
- Strong currency in uptrend pairs
- Weak currency in downtrend pairs
- Neutral currencies in ranging pairs
Trend Trading Rules
- “The trend is your friend” - Trade with the trend
- Use pullbacks for entries
- Don’t fight strong trends
- Multiple timeframe confirmation increases probability
Using the Strength Meter
If USD shows +60 strength across multiple timeframes, USD pairs are likely trending:
- EUR/USD trending DOWN (USD strong)
- USD/JPY trending UP (USD strong)
Check currency strength to confirm your trend analysis.