In forex and general, a trend is simply a prolonged market movement in one direction, either up or down. From a traders' perspective, though, that simple definition is so broad as to be relatively meaningless. A more relevant definition of a trend would be one where a trend is defined as a predictable price response at levels of support/resistance that change over time. For example, in an uptrend the defining feature is that prices rebound when they near support levels, the tools used to identify whether a trend is in place or not-trendline analysis to establish support and resistance levels.

Trendline analysis is often underestimated because it is perceived as overly subjective and retrospective in nature. While both criticisms have some truth, they overlook the reality that trendline analysis does not reveal a discernible trend, it's probably because there isn't one.

Forex trendline analysis is best employed starting with longer timeframes (daily or weekly charts) first and then carrying them forward into shorter timeframes (hourly or 4-hourly) where shorter-term levels of support and resistance can then be identified. This approach has the advantage of highlighting the most significant levels of support/resistance first and less important levels next. This really helps reduce the chances of following a short-term trendline break while a major long-term level is lurking nearby.

Another forex technical tool that can be deployed to verify the existence of a trend is the directional movement indicator system (DMI). Using the DMI removes the guesswork involved with spotting trends and can also provide confirmation of trends identified by trendline analysis.

Evry forex trader would tell you (Even the most knowledgeable traders) that you can’t predict with complete and utter certainty the market’s behavior.

This is why one of the most important things, without a doubt, is to protect yourself in every forex deal with the “stop-loss” option. This option allows you to know exactly how much you’re jeopardizing in the deal, and what is your loss limit (not more than…).

A stop-loss order is actually an instruction to exit your position if the price reaches a certain point, of course to cut your losses ‘till that point.

If you take a long position (expect the rate to go up) you would place a stop loss order below the current market price.

If you take a short position (expect the rate to go down) you would place a stop loss order above the current market price.

Most people don’t really know how to use the stop loss position, but more important - a lot of people use it in a wrong way, which causes them to thiknk they are protected while they are in a huge risk.

A stop-loss position is NEVER to be moved, and it doesn’t matter how hard you think or even know the price would change in your favor. Once you change the stop-loss position you find yourself drawn even more to the problematic situation of trading dreams instead of forex - and it’s a wrong place to be in, since dreams will get you nowhere!

On this blog , I'm planning on teaching you everything I know about forex.

Give you tips , teach you some of the rules and try and advice you about different currency's.

So , What to do first?

The first step in trading is to understand currency quotes. Since foreign exchange is the simultaneous purchase and sale of two currencies, the quote will always be given in pairs. Each pair has a base currency, which is the first listed currency (e.g. USD/CHF). When the quote rises, it means that the base rate has strengthened in value, since $1 could buy more francs, and vice versa. The base rate, which is normally the U.S. dollar, is set to a value of $1. There are a few major pairs in which the dollar is not the base currency, such as the British pound (GBP/USD), the euro (EUR/USD), and the Australian and New Zealand dollars (AUD/USD, NZD/USD). If the GBP/USD rises in price, then the British pound is rising in purchasing power versus the US dollar.

More tips and help will be available soon!!!