August 16, 2013
2 Free Tools That Will Help You Identify The Latest Forex Trends
One of the golden rules of forex trading is that you should always trade in the same direction as the overall trend.
So for instance, if the GBP/USD pair is in a strong upwards trend on the 4 hour and daily charts, then you ideally want to be looking to open long positions on the 1 hour chart so that you are trading with the trend rather than against it.
It is often fairly easy to spot price trends simply by looking at basic price charts. However there are also a few tools you can use to help you find forex pairs that are in strong trends right now, to save you the hassle of scanning the charts of all the major currency pairs.
The first one that I recommend is this list of the strongest trending forex pairs because this list is updated every day and is derived using Marketclub's trading signals, which are excellent at detecting new trends on multiple time frames.
You do need to enter your name and email address to access this list, but it is well worth it because you can find out in an instant which pairs are in the strongest trends each day.
The second tool I recommend is one that I discovered earlier today almost by accident.
If you check out this page of the Pattern Trapper website, you will see a list of the 6 major currency pairs, along with many of the minor pairs as well.
More importantly, you will see that it tells you whether each pair is currently in a bullish, neutral or bearish trend.
This is determined slightly differently to Marketclub's trend analysis because it is based on whether the closing price is above or below the moving average of the Daily Pivot (3×1) and the moving average of the Weekly Pivot (7×5).
However it is still very useful, and this trend analysis is also updated each and every day (no later than 7PM ET).
So if you are looking to spot the strongest trending pairs, or want to determine the current trend for any given pair, you might want to use one, or indeed both of these free tools.