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The AUD/CAD trend chart is showing that this pair currently trending down on the larger time frames, like the W1 time frame, shown below. The current support leval is at around 0.9850. Set a sell alert for this pair at that price and look for a sell signal on The Forex Heatmap® below there. The next support is about 200 pips below at approximately 0.9650, see the yellow lines on the chart. The chart system you see is exponential moving averages set up on meta trader for using with multiple time frame analysis.

AUD/CAD Chart 9-17-2014

Today in forex trading The Forex Heatmap® had a buy alert on the AUD/USD.  The Australian Dollar (AUD) strengthened late in the main session. This drove movement on several pairs in this currency group. Pairs like the AUD/JPY and AUD/USD moved higher. The AUD/USD is a short term movement back to the upside, so we would scale out lots and manage profit. The AUD/JPY is getting back into its long term uptrend and has potential to the 98.50 resistance area and beyond. The alert system you see below is The Forex Heatmap®, which provides live buy and sell alerts for 28 pairs. The heatmap also has the arrow system to alert you what pairs to consider first.

Forex Alert System AUD Strength 9-16-2014

Today in currency trading the CAD (Canadian Dollar) was weak on pairs, driving strong price movement on several pairs. The AUD (Australian Dollar) was also weak today. The AUD/CHF dropped, but this pair is at one support level and we would be scaling out lots on this pair and taking some profit at these price levels. The EUR/CAD moved up strong and should trend up and continue higher to the next resistance level around 1.4325.

Currency Strength Indicator CAD Weakness

The live indicator you see above is The Forex Heatmap®. It provides live currency strength and weakness signals for 28 pairs and 8 currencies. When conbined with some simple trend indicators, traders can build a trend based trading system and profitable trade entries.

The GBP/CAD H4 time frame is shown on the chart below. This pair could reverse back up in the main session tomorrow on this time frame. Traders can set a price alert at 1.7050 the check for a buy signal on The Forex Heatmap®. Traders should also check forex news calendar for the British Pound (GBP) news drivers tomorrow or Canadian Dollar (CAD) news drivers.

GBP/CAD H4 Time Frame

If the price alert hits and the trade entry is confirmed by the heatmap, you can enter the trade with upside potential to the 1.7200 resistance area. The majority of the GBP exotic pairs on the market have been retracing against their major trends, so this upcycle would be expected to be 2-3 days, similar to the recent retracements and up cycles on the GBP/AUD and GBP/NZD. This happens frequently when pairs with one common currency follow each other like dominoes falling, we call this the domino effect. In this case the GBP/CAD should follow the GBP/AUD and GBP/NZD recent moves up. The H4 time frame on the chart below is some simple 5/12 exponential moving averages set up on the meta trader charting platform. This is a great example of a swing trade setup, we use the H4 time frame in our trading system for swing trade entry points at or near the beginning of the cycle.

Today in currency trading The Forex Heatmap® signaled a buy on the EUR/AUD. The Australian Dollar (AUD) was weak on all pairs, and the market also had some Euro (EUR) strength and Swiss Franc (CHF) strength. This drove the movement and trading cycles on the AUD/CHF and EUR/AUD. These movements were against the major trends of the market but were very good short term movements for intra-day trading. The trading signal system you see below is The Forex Heatmap®, which provides live signals for the AUD pairs and a total of 8 currencies. The fundamental basis for the heatmap is forex analysis using parallel and inverse pairs.

Currency Trading Signals EUR/AUD 9-8-2014

The GBP/AUD trend analysis shown below indicates that this  is trending lower on the larger time frames, like the weekly time frame.  This pair has no nearby support below the current pricing of around 1.7590. You can set a price alert here. When the price alert hits check The Forex Heatmap® to verify any sell entries.     The pip potential is nearly 600 pips to the next major support level. The Australian Dollar (AUD) strength is prevalent in the market now and driving movement. The analysis below was done with simple trend indicators and multiple time frame analysis.

GBP/AUD Analysis 9-3-2014

Today in forex trading the AUD/USD gave a buy signal on The Forex Heatmap®. The Australian Dollar (AUD) strengthened on all pairs, and other currencies like the USD, NZD, and GBP we weak or somewhat weak, and this drove good price movement. Pairs like the AUD/USD moved up but this pair is inside of a short term trading range. The AUD/NZD moved higher and is trending on the larger time frames, looks like a hold to about 1.1400, which is the next resistance area. Also the GBP/AUD broke support and is trending lover, it also looks like a hold as it is also trending down on the higher time frames. The trading signal system you see below is called The Forex Heatmap®, which provides live trading signals for 7 major currency pairs and all 28 pairs we track with our trading system.

Forex Trading Signals AUD/USD 9-3-2014

The GBP/CAD trend chart indicates that this pair is trending down on the larger time frames, like the W1 time frame shown below. This pair has hundreds of pips of potential and we would start looking for sell signals going forward. The current support level is just below 1.8000. You can set a price alert here, and when the alert goes off verify your sell entry with The Forex Heatmap®. The British Pound (GBP) pairs are currently trending on many of the pairs we follow. The chart analysis you see below is performed with multiple time frame analysis by individual currency.

GBP/CAD Chart Analysis 8-27-2014

Any forex trader can quickly learn to locate the trends of the forex market with some easy to set up moving averages. Trading forex trends on the larger time frames will ensure that traders always have a good level of success by not going against the market. Applying some filters like support and resistance  will help traders to locate a profitable entry point into the market trends across 28 pairs and 8 currencies.

Benefits Of Trading Forex Trends

The benefits of trading forex trends are numerous. The forex market is a trending market. Most trend cycles tend to last for several days and can go on for weeks and some times months. Getting into a trend and riding the trend, letting the trend do most of the work is a sharp contrast to trying to scalp 10 pips every day using technical indicators. Trading forex trends on the higher time frames, H4 and larger, will result in less trades and more potential pips per trade. Even novice forex traders know that the pips are in the larger time frame trends, they just need to adjust their style to capture more pips. Any trader can inspect trend cycles on the H4 time frame or larger over time to prove to themselves that trend trading is the place to be.

Set Up The Moving Averages

The first thing a trader needs to do is to set up their trend indicators.  In order to locate the trends on the forex market you should first set up some moving averages. These free forex indicators are not complicated to set up or interpret. These are some basic exponential moving averages with two colors, green for the 5 period and red for the 12 period. You can set up these trend indicators up on almost any forex charting  platform. Some of the images you see in this article will show you how the trend indicators look on a Metatrader platform. The trend indicators can be set up on any group of pairs you wish, including the 28 pairs comprised of the eight major currencies we follow on a day to day basis. The eight major currencies are the USD, CAD, EUR, CHF, GBP, JPY, AUD and NZD.

Locate the Trend

Now that we have a set of trend indicators, we can work on locating any exiting trends. When looking for trends always start with the largest time frames like the MN and W1 time frames and work backwards through the smaller time frames. Drilling down the charts and trends this way is called multiple time frame analysis. Multiple time frame analysis can be learned by any forex trader and is a powerful technique for market analysis.

Trading Forex Trends – Nine Time Frames

If you find strong uptrends or down trends with the larger time frames, this is good news for any trader who intends to always be trading forex trends. For a pair that is trending up the red and green lines on the moving averages will be pointing up and separated, for a pair that is trending down the moving averages will be pointing down and separated on that particular time frame. See the image below for an example trend.

If a trader also sets up the moving averages by individual currency they can start to make more pips much faster. Set up your moving averages grouped together with one common currency. For example, if you set up all of the EUR pairs together, it will be much easier to spot EUR strength or weakness in the market. For example, if all of the D1 time frames are pointing up on the EUR pairs, you know the EUR is strong and can be traded in that direction. This also allows pairs like the EUR/CHF, EUR/CAD and EUR/JPY, plus other EUR pairs, to be considered for trading. If you would like to determine individual currency strength for 8 currencies, check out our forex market analysis spreadsheet.

Filter Potential Trades With Support and Resistance

The experience of trading forex trends can be enhanced by filtering potential trades with support and resistance. Look at the example below. This is the GBP/AUD pair, it is trending down on the W1 time frame. So you have located a pair that is trending down, now you would like to filter support levels to see how many pips you could possibly make by selling this pair.

In the example below the GBP/AUD is trending down on the W1 time frame, which is a large time frame. This pair could trend much lower and the next support level is hundreds of pips away, this is a great trend trading opportunity. You could set a price alert at around 1.7700 (see top yellow line), it has 800 pips of potential below there, which is fantastic. Trading forex trends on the large time frames can provide superb pip potential compared to any scalping methods.

Trading Forex Trends – GBP/AUD Moving Averages

If a pair is in an uptrend on one of the larger time frame you could do the same thing by filtering resistance levels, since you are trading in the opposite direction.

Locate The Trade Entry Point

At this point the trader knows the direction of the trend, the time frame, and the pip potential. Now the trader needs a verified entry point to sell this pair. The final filter is the entry point into the trend. When you have a break of support or resistance on any currency pair it is easy to be notified with an audible price alert, which can easily be set on most trading platforms. These audible price alerts can also be sent to your email or phone.

When you get the price alert, yo know that the support has been breached. At that point you need to verify the sell entry into the trend. In the example above the GBP/AUD is trending down on the W1 time frame. If you were to get a price alert that support was broken on the GBP/AUD at the first support level, denoted in yellow, you would then check the entry signal to make sure you have a valid entry point. Then you can enter the trend safely and start to ride the trend for several days or possibly longer. The signal system you see below is The Forex Heatmap®, in this case the GBP is weakening and it is likely safe to sell the GBP/AUD.

Trading Forex Trends – GBP/AUD Sell Signal

This image shows an example of GBP weakness on the heatmap,  and this signal would validate the entry point into the larger downtrend on this pair. You would then execute a trade to sell the GBP/AUD, in the direction of the trend. Is might also be possible to sell the GBP/AUD if the AUD was consistently strong. The heatmap works the same way for 8 currencies and a total of 28 currency pairs.

Trading Forex Trends May Not Be Possible In Non Trending Markets

If you are interested in trading forex trends you have to realize that sometime the forex market is not trending. In this situation many pairs may be ranging or oscillating between support and resistance. In this case you can trade pairs that are ranging in wide ranges and on the shorter time frames. If you would like to trade ranging markets with the same set of moving averages and tools, check this great article about trading ranging forex pairs. In this case your risk to reward ratio is lower on each trade. Tools like The Forex Heatmap® become more valuable, along with money management skills.

Trading Forex Trends With Moving Averages

Conclusions about trading forex trends with moving averages: Moving forward from scalping the forex market to trading with the trend on the higher time frames is certainly possible with the tools and indicators shown in this article. We believe trading with the trend or ranging markets can be successfully traded and pip totals can be increased for almost all traders.

The GBP/CHF analysis indicates that this pair could be building a larger downtrend on the W1 time frame. The W1 trend is now crossing to the downside, the D1 trend is already pointing down. Start looking for sell signals on the The Forex Heatmap® starting tomorrow morning in the main session below the 1.5125 price alert point, which is the intra-day support level. We do not know the exact support target for this pair but the GBP/CHF could easily drop for a couple of weeks. The EUR/GBP, which moves inversely to the GBP/CHF, is also building an uptrend on the W1 time frame. The analysis of the GBP/CHF pair was conducted using multiple time frames.

Currency Pair Analysis GBP/CHF 8-13-2014