Forex market trend - the most essential factor at acceptance of trading decisions

Change of Forex market prices occurs in the form of a Forex market trend. Character of a Forex market trend is defined by many variables. Movement of the prices is influenced with the changes occuring at a level of corresponding fundamental economic forces. Thus, at the moment of occurrence of a Forex market trend the reason of its occurrence is not always obvious. To define the circumstances promoting a birth of a concrete Forex market trend, not always it is possible even after the significant time period. Forex trading indicators of the Forex market is a tool of identification of a Forex market trend and changes in it; the reasons of formation of a Forex market trend with the help of the given method are described cannot be.

Forex market trends are in the habit to last. Time of their life cannot be determined beforehand. However with confidence it is possible to tell, that infringement of balance testifies to the fast ending of a Forex market trend in system of a supply and demand on the corresponding financial tool. Any trader is interested in that the first to find out about the future changes in Forex market trends.

Change of a Forex market situation causes behaviour of traders: reaction of them is various, depending on trading skill and the purposes of everyone. The beginning of a new Forex market trend is similar to a divergence of circles on water in which have thrown a stone. The first waves is a reaction to developed circumstances of the most informed and skilled part of Forex traders. They are followed with waves of the operations made by participants of the Forex market which the latest news reach hardly more slowly. Then - the third wave of even less informed Forex traders. And so on, until then while the most unsophisticated traders will not follow the lead of the environment. This moment - eve of destruction of a Forex market trend and the beginning of return movement. Price Forex market trends, thus, are shown as waves of purchases or sales. Exchange tools are sold and bought by people, and the person by the nature is emotional. Factors, the most important for acceptance of investment decisions and determining behaviour of participants of the Forex market , besides fundamental economic circumstances, are features of mass psychology.

Forex market trends operate on various time pieces, their length varies from several years about several minutes. Directions of Forex market trends also are various: Forex market trends move either upwards, or downwards, or to the sides. Forex market trends, thus, can be subdivided on:

1) The basic long-term, continuing years;
2) Significant average extent, duration from several weeks about several months;
3) Small, continuing some days;
4) Instant, whose influence is significant only for intraday time traders.

The establishment of the best ratio compensation / risk in conditions of Forex market trends of various directions and the different periods of duration is possible in case of true definition of parameters of the technical indicator of the Forex market suitable to a concrete situation. Procedure of selection can seem complex, however materials of article convincingly testify to an opportunity to achieve desirable result by careful definition of the investment purposes and carrying out of systematic research.

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