Best Forex Trading Technique For Catching Beginning Of Trends And Ride The Trend

One of the best forex trading techniques to catch the beginning of a new trend and  make a lots of pips (when the new trend continues in its new direction) is none other than using simple support and resistance trading techniques and price action.

Here’s how…

This is what you see first:

Best Forex Trading Technique


This is what you see next:

Best Forex Trading Techniques


And then this happens:

Forex Trading Techniques

See? I told you we are still in an uptrend…the price will continue to move up. The uptrend is not finished yet:

Forex Trading Technique

Is the market still going up???:

Capturing Trend Change


Its much easier to say that “you can  buy here or there and sell here or there” on a forex chart “after” the event has happened because now you can see “what has happened” in the past.

But one skill that needs to be learned as a forex trader who is interested in swing trading, especially if forex technical analysis is  your bread and butter is to have the eye to see what can potentially happen in the future by looking at price action of the past and the most recent price action.

One of the best ways to do that is using support and resistance levels and price action behavior.

The last chart above, actually gave two clues prior to the market trading lower.

I leave it up to you to figure it out….

But in case you can’t figure it out here they are:


  • price intersected R2 and went up but came down but here’s the thing…the R1&R2 line would have now acted as Support Level for that price to bounce back up from…but that did not happen!
  • Instead price went past that R1&R2 line without any signs of stopping and hits a support line S1 and then bounces back up forming another support level, S2.
  • Now price goes back up and hits the R1&R2 line that it intersected previously and guess what happens there? It finds resistance, R3 there and its pushed down from there.
  • Where would have been the best places to take the trade? I would have gone short as soon as price hit R3 level because I know price did not stop from on the R1&R2 level and I would have anticipated that price would bounce back down from there.
  • Or you could wait for a bearish reversal signal in the the R3 resistance level and enter a  short trade based on that. Did you notice the  Bearish Reversal Candlestick Pattern, the Shooting Star in the R3 level? That’s your signal and confirmation to go short.



What if you did not see clue #1 and missed entering a short trade there? Well, another opportunity presented itself right after the first clue.


So where did the trend actually changed from uptrend to downtrend?

  1. In my opinion, clue#1 was the signal that gave anybody that heads up that the uptrend may be ending because R1 & R2 were supposed to keep price bouncing upward but that did not happen at that level.
  2. Clue #2 was much more solid confirmation when the support levels S1 & S2 were broken and when price came back up, these two support levels acted as STR and pushed back the price down and you should notice that from there on, it was all downward move, a downtrend.

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