PREPARE FOR THE WORST...
Market change over time. A well designed system starts with trend analysis to stay away from potentially losing trades. There are two problems of how a Forex system recognizes the trend.
PROBLEM FALSE "STRONG TREND" INDICATION.
The system responds only to immediate price action. An explosive price movement that is usually the result of news release is tempting people to jump in and make a profit. It looks like a "strong trend", but what usually happens next is a hard fall.
To avoid falling into this trap, check for the SOLUTION to find a REAL trend
SECOND PROBLEM TREND RELIABILITY
Most systems use various indicators to determine the trend. Actually, there is nothing bad about using indicators. One Simply Moving Average can do the job. The problem comes with the question "Is the market trending NOW?" Whether the market is trending or not trending is not like black and white. The correct question is "How well the market is trending?"
And here we have something called TREND RELIABILITY.
Trends exist and they can be traded up and down for a profit. You have to focus only on the most reliable market trends. "Forex Trendy" is a software solution to find the BEST trending currency pairs, time frames and compute the trend reliability for each Forex chart