FOREX TRENDS
Forex Trends are similar to support and resistance. The only difference being that while support & resistance are horizontal, trends move upward or downward.
In a rising trend the price makes higher highs and higher lows. In a falling trend the price makes lower highs and lower lows.
The longer the trend holds the less likely it is to be broken.
False breakouts often occur and one should be cautious of rushing into a breakout to buy or sell.
Pullbacks often occur after a breakout which offers the forex trader and ideal time to climb in.
The first strategy for trading the forex market with trends is either to buy on the lows of a rising trend or sell the highs of a falling trend.
The second strategy is to wait for a breakout and enter in the direction of the breakout after a pullback.