1. Forex Lesson 3 :
Market Trending

2. Forex Tips & Trading Strategy For You
Disclaimer
This Document is for educational purpose only.
By viewing this you agree that it is general educational material and you will not hold
anybody responsible for loss resulting from the content provided by pipsumo website.
Forex currency trading have large potential rewards but also large potential risk.
Don’t put your Money that you can’t afford to loose.

3. Market Trending

4. Forex Lesson 3
• Trending Market
– 3 Types Market Trending
– Understand Market Structure
– 3 ways to know weakened trending market.
– Trending Reversal
– Best entry on trending market.

5. What is market trending?
• 'Trending Market' A market that is
trending in one direction or another.
• A bull market is trending moving upward,
while a bear market is trending moving
downward.
• A trending market can be classified as such for
either the short, mid or long term

6. Chart
• OHLC is Open, High, Low and Close
• We can know the information from
candlesticks.

7. OHLC
open
close
high
low
high
open
close
low

8. 3 Types Market Trending
• Uptrend
• Downtrend
• Sideways

9. Uptrend

10. People Believe Uptrend is moving like this

11. Real Market Movement is like this.
The price is moving with zig-zag pattern.
To understand this, you need to count
High and Low in market movement
H
HH
HL
HL
HL
HH
HH- Higher High
HL- Higher Low

12. Downtrend

13. Downtrend
People believe trend is moving like a
straight line.

14. • Real trendline is moving in zig-zag pattern. In
high and low pattern.
L
LH
LL
LH
LH
LH
LL
LLHH- Higher High
HL- Higher Low

15. Confirmation
• Break! High/low
• In order for you to know the market are
trending.
• You need to count the high and low.

16. • Look at high and low of the previous candle.
• If it uptrend, the previous high was break with
the current candle.
• If it downtrend, the previous low was break
with the current candle.
• This candle you need to Look At bigger time
frame.
• Daily and weekly

17. Uptrend

18. Uptrending Market
• Wait for the candle to complete before
deciding what is the market trend.
• From the breakout of previous high candle,
we know that price is going to find its higher
high position.
• Please remember Price are moving in high and
low condition.
• After price break previous high. It may find its
higher low before continue climbing up.

19. Break!
HH
HL
Look at Daily and weekly Candlestick
HL
HH
HH
HH

20. HH Break!
HL
• Smaller Time Frame
• Usually H4 and H1
HL
HH
HH

21. Downtrend

22. Downtrending Market
• Wait for the candle to complete before
deciding what is the market trend.
• From the breakout of previous low candle, we
know that price is going to find its lower low
position.
• Please remember Price are moving in high and
low condition.
• After price break previous low. It may find its
lower high before continue going down.

23. Break!
LL
LHLH
LL
Look at Daily and weekly Candlestick
LL
LL

24. • Smaller Time Frame
• Usually H4 and H1
LH
Break!
LL
LH
LL
LL

25. Sideways
• Sideways happened when there is not much
price moving.
• If we look at the higher time frame,
candlestick formed as doji.
• The market are indecisive.
• Some of traders, they don’t trade at this
market condition.

26. Higher Time Frame Lower Time Frame

27. How to know weakened Trending
• Shadow
• Volume
• Stochastic

28. Shadow
• By looking at the shadow. The longer the
shadow. The higher the pressure from the
opposite trader.
shadow

30. volume
• Decreasing volume of each candle
Vol 1
Vol 2
Vol 3

32. Stochastic
• Stochastis is use for trend confirmation.
• This is to know what market condition is
overbought/oversold.
• You can just use the standard settings indicator
of stochastic.
• 5,3,3
• %K - 5 , %D - 5 , Slowing – 3
• Stochastic use to support your decision on
looking at the market trending.

34. overbought
oversold

36. Click here to download
• If you want to know more about stochastic
and divergence, you can download this ebook.

37. Market Reversal
HH
HL
HH
HL
HH
HL
HH
HL
LL
HL
HL
LL
LL
LL
LL
HL
Break!
Downtrend
uptrend

38. Best Entry Buy
Target Profits
Buy
Stop Loss
HH
HL
HH

39. Best Entry Sell
Target Profits
Sell
Stop Loss
LL
LL
HL

40. Forex Trending
• For More Forex Trending to discover, can also
download this ebook.

41. Conclusion
• Market is moving in high and low condition.
• To determine the market trending, always
refer to higher time frame.
• Entry at smaller time frame

42. Forex Lesson 4
• Forex Strategy
– 3 killer candlestick reversal signal
– How to trade forex with candlestick reversal
– Parabolic SAR and moving average strategy
– Settings on indicator
– Entry in the market

43. visit