1. The trend is your friend.

The market moves in 3 structures: uptrend, downtrend and sideways. The whole market revolves around these three concepts – this is how the market can move.

Using the Euro as an example:

-Up Trend: If the trend goes up the Euro is worth more.

-Down Trend: If the trend goes down the Euro will lose in value.

-Sideways Trend: Prices move in a narrow range.

Now we will outline an uptrend on the chart.

The first step is to recognize an uptrend in the line chart, like in the example below.

Here is also an example of a Downtrend in the charts.

And finally here is how a sideways move looks in the charts. Unfortunately, it will never be as beautiful as the first drawn example.

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