Currency Trends and Accumulative Swing indicator in forex trading

It is usually a tough ask for the new traders to analyze the events that are happening in the market. To get started, a trader must learn a set of trend patterns. These are designed to help a trader about when to start trading and how. Many new traders must have seen a statement “A trend is actually your friend.” What this mean is that a trader should never think of trading against the trend.

Currency trends

It is important for a trader to know what trend is all about and what its impact of being strong is. When you are dealing with currencies, you must know that its upward and downward movement is caused by a trend.
The problem which forex traders face is that recognizing trends is very simple by watching the historical chart. However, the question is how to recognize the movement of forex market when the trend is on the move. A first Things a trader needs to do here is to analyze whether the trend is real or not and how strong it will be. Secondly, a trader must sketch a trend line to point out the levels of resistance and support. First, a trader needs to draw and extend the lines to over a couple of weeks. Later, he can shrink the line to daily or hourly. Through this technique, a trader won’t lose a trend, and the support levels will remain highlighted.
Accumulative Swing indicator
ASI or Accumulative Swing indicator is a technical analysis tool used for the indication of a trend. This tool shows a positive value bar of 0 to 100 and negative value bar for 0 to -100. This trend can also be utilized for denying or accepting the breakdown of trends. A positive trend shows that it is continuous whereas the negative trend shows it is diminishing. An upward trend is usually strong when the price is lower than ASI level. On the other hand, a downward trend is usually strong when the price is higher than ASI level.