The traders with limited experience begin to understand that there is no need to consider every little movement of the market. There are different ways to understand which information is worthy of consideration in order to calculate the future evolution of trends.

Studying trend combinations and Fibonacci techniques can supply you with precious information that regard the evolution of the trends.

Your goal is to understand the exact moment in which it is convenient to join a trend.

Let’s assume you have a negative candlestick, thus black and descending. If the closing of this candlestick is lower than the peak reached in the considered period this will indicate even a future descending.

The higher the difference between the closing point and the peak, the more are the possibilites that the trend is descending.

The same principle is applied to the ascending trends: the higher the difference between the closing point and the peak, the more are the possibilities that the trend is ascending.

There is no ideal period to analyse the trends in the Forex charts. However, it is convenient to use a chart in which  every candlestick last 60 minutes.