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Trend Synergy Forex Trading Strategy

Most professional traders think in terms of probability. This is because trading is all about probability. It's about finding a repeating pattern or series of events that will correlate with an outcome in our favor. It won't always be true, but it should be true more often than not. Nothing is certain in trading. Everything can happen. However, traders who think in terms of probability know that if the same actions are repeated over and over again when a repeating pattern occurs, they should be profitable in the long run.

Trading is all about probability, and one of the best ways to increase statistical odds in trading is to look for confluence. Confluence can come in many forms. This can be done through the use of technical indicators. This can be done by aligning the trend reversal signal and momentum. You may be looking for some price movement clues. It can also be done by aligning the time frame.

One of the best confluences to look for when trading is the alignment of long-term trends with short-term momentum. This is clearly stacking opportunities in favor of trading. This allows traders to trade in the direction of the longer-term trend while enjoying the boost in momentum brought by the short-term trend.

Synergy Trends Forex Trading Strategies are strategies that trade in the direction of the long term trend while confirming the strength of the trend from short term momentum and trade in the direction of the longer term trend on an immediate trend reversal. It uses several technical indicators that will help traders to identify trending markets, trend directions, and specific entry points.

MACD point

Moving Average Convergence and Divergence (MACD) is a technical indicator used by many traders. It is designed to help traders see changes in the direction, strength, momentum and duration of a market trend.

The classic MACD is a type of oscillator technical indicator. It is calculated based on the difference between the two moving average lines. What are 12 and 26 period Exponential Moving Averages (EMA). It also drew another line based on the 9-period Exponential Moving Average (EMA) from the previous line. This creates two lines that interact with each other. Another classic MACD indicator also draws a histogram bar that shows the difference between the two lines.

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Trends are usually based on how the two lines are positioned. When the MACD line is above the signal line, it indicates an uptrend, while an inverse buildup indicates a downtrend. It will also be consistent with the histogram bars being positive or negative. Trend reversal signals are generated based on the crossing of two histogram lines or bars moving above their midlines.

The MACD point indicator is a simple indicator that draws a dot when two lines intersect. It draws a blue dot below the price when it detects an uptrend reversal and a red dot above the price when it detects a downtrend reversal.

Moving average index

The Average Directional Movement Index or ADX is a trend following indicator designed to help traders see the overall trend direction, as well as trend strength.

ADX is the value of a growing average price range. It measures the strength of price movements, whether positive or negative, by calculating these directions separately. Then two lines are drawn, namely DMI+ which is a positive direction of movement and DMI- which is a negative direction of movement. When the DMI+ line is above the DMI line, it indicates the direction of the bullish trend. On the contrary, DMI+ below the DMI line indicates the direction of the bearish trend.

ADX also drew another line indicating the strength of the trend. This line is called ADX. ADX line above 25 indicates a trending market condition, while ADX line below 25 indicates a market that is not trending. A wavy ADX line will also indicate that the market is picking up trend momentum.

trading strategy

This trading strategy is a trend following strategy that uses multiple indicators to match the long-term and short-term trends.

We will use the 200 period Exponential Moving Average (EMA) to identify the direction of the longer term trend. The trend is based solely on the price position in relation to the 200 EMA line as well as the slope of the 200 EMA line.