(1) the truth about forex trends

8/3/2019 (1) the Truth About FOREX Trends

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The TruthAbout FOREXTrends


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The Core Price Structure and Rhythm of ALL Markets!To Successfully Trade the FOREX Markets

You need to understand the Underlying Movements and Rhythm of the Markets!

The following Principles form the Cornerstone of a Consistent and Successful

Trading Methodology. There is only one major Market Cycle (or movement) inexistence. The FOREX Market can do nothing else but comply with this one basic

Market Cycle, we call it

The Market Flow Analysis Method (Pure PRICE ACTION)

There is no other Movement or Motion possible in the FOREX Markets.

The FOREX Markets do NOT move in a Random fashion.

The FOREX MarketsALWAYS move within the framework of an Underlying

Market Wave. Otherwise, known as a TREND, whether it be Up, Down, or

Sideways.

Market Flow Analysis Method

(MFAM)


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Three Primary Waves (TRENDS) in the FOREX Markets!

There are only Three (3) Primary Waves (TRENDS) in the FOREX Markets:

1) UP TrendA Series of Higher Highs and Higher Lows

2) DOWN TrendA Series of Lower Highs and Lower Lows

3) SIDEWAYS TrendA Series of relatively Equal Highs and Equal Lows

Identifying which Wave or TREND the FOREX Market is in is vital to Successful

Trading.

The Market Flow Analysis Method (MFAM) is based upon: the Upside Penetration of market HIGHS, and

the Downside Penetration of market LOWS.

New Highs and New Lows are continuously being formed in the Markets. Therefore, Traders

must identify these important levels to help in mapping out what the Markets are most likely

going to do next.

This will help you in identifying if a market is TRENDING UP, TRENDING DOWN, or

TRENDING SIDEWAYS, at the Early Stagesof the Trend and not after the fact.


(MFAM)


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The UP Trend Market Flow Process

A series of New Highs (NHs) and Active Lows (ALs)


(MFAM)

LOW(Lowest LOW)

AL(Active Low)

AL

AL

MRAL(Most Recent Active Low)

HIGH

NH

NH

NH


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The DOWN Trend Market Flow Process

A series of New Lows (NLs) and Active Highs (AHs)


(MFAM)

HIGH

NL

NL

LOW MRAH

AH

AH

AH

NL

(Most Recent Active High)


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The SIDEWAYS Market

A series of relatively Equal Highs and Equal Lows


(MFAM)

HIGH

LOW


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MRAL

An UP Trend Reversing Into A DOWN Trend

Downside Penetration of the Most Recent Active Low (MRAL) in the MFAM


(MFAM)

AL

NH

NH

HHAH

(Most Recent Active Low)

Simply being able to identify critical Lows in an UPTREND will enable you to stay

in a Trend longer and you will know with High Probability at what levels the Market

is most likely going to change directions.

NL

The UP Trend is potentially Reversing into aDOWN Trend at the Downside Penetration of the MRAL

AL


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LL

A DOWN Trend Reversing Into An UP Trend

Upside Penetration of the Most Recent Active High (MRAH) in the MFAM


(MFAM)

NL

MRAH

AH

AHNH(Most Recent Active High)

Simply being able to identify critical Highs in a DOWNTREND will enable you to

stay in a Trend longer and you will know with High Probability at what levels the

Market is most likely going to change directions.

AL

The DOWN Trend is potentially Reversing into an UPTrend at the Upside Penetration of the MRAH

NL


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(1) the truth about forex trends

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