63.21 % of retail investors lose their capital when trading CFDs with this provider.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63.21 % of retail investors lose their capital when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Academy How to trade How to use the MetaTrader4 platform: How to determine the trend in the market

How to use the MetaTrader4 platform: How to determine the trend in the market

A popular saying among investors is "trend is you friend", which in Polish means that "the trend is our friend". If you want to trade successfully in the forex market, you should remember this sentence forever. Determining the trend is the absolute basis of technical analysis, and its wrong identification can have painful consequences in the further stages of positioning.

Referring to the definition of a classic of technical analysis - J.J. Murphy, a trend is the direction in which the price (market) moves in a given period. It is worth remembering, however, that the price does not move in a straight line, but is a series of waves with easy-to-identify turning points, which we commonly refer to as lows and highs.

In this video, we will show you:

What is the trend on the market
How to correctly draw a trend line
How to identify a trend with a moving average

How to set a trend?

There are three types of trends:

upward trend - the price reaches higher and higher highs and ever higher lows,
downward trend - the price reaches lower and lower highs and lower and lower lows,
lateral (horizontal) trend - the price moves in a specific, mainly narrow zone.

Unfortunately, we do not always recognize a trend based on the above-mentioned criterion. That's when technical analysis tools come to our aid. The most popular are:

trendline - a straight line that connects at least two lows or highs, assuming the function of a support or resistance line. Breaking them down means a change in the current trend,
moving averages - indicators which, depending on their configuration, allow to indicate the current trend and what phase it is in,
ADX - an indicator consisting of three lines, which also allows you to determine the direction of the trend and its strength.

63.21 % of retail investors lose their capital when trading CFDs with this provider.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63.21 % of retail investors lose their capital when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63.21 % of retail investors lose their capital when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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CFDs with underlying asset a virtual currency pair are complex, extremely risky, and usually highly speculative and entail a high risk of losing all the invested capital and therefore are not appropriate for all investors. The values of virtual currencies values are subject to extreme price volatility and therefore may result in significant loss over a short period of time. Clients should not engage in trading in CFDs with underlying asset a virtual currency pair unless they have the necessary knowledge in this specific product; or if they can bear the loss of the entire invested amount. For more details please see the Risk Warnings and Disclosures.