Learn how to capture the major long term trends that continue and hold it

If you look at the forex charts and past history data, forex long term trends trade could last for weeks and months, and give you big profits. To get the most out of it, you need to know how to capture the major trends and the huge profit so that you can make lots of money from the forex market. 

 If you are after long term trends, you must be on board exactly on time when it comes and then keep it. How are you going to do so? Here we will show some forex trading strategies to catch the major long term trends to make big profits. 

 The first strategy is to use the break outs wisely. The majority of the new trends and the trends consistency begin from the new market highs. In order make the full use of the break out, you need to place the buy order when the break out occurs. 

 However, the majority of traders fail to take the chance when they wait for the price to draw back because they think they can buy at a better price, but the price shifts in most cases does not keep on. 

 The second strategy is to make sure the break out is valid because not each and every break out will give you a success, so you need only to choose the good ones. To know whether the break out is valid or not, you need to test them out multiple times on different and longer gap on time frame which also make sure the validity of the support and resistance levels. You're watching at the overall level of major market participants, and it is not just buying, but you need to check the momentum. 

 The third strategy is that not only you need to make sure the break out is valid but you also need to confirm it by using momentum indicators such as the Relative Strength Indicator and the stochastic. If these momentum indicators indicate a strong momentum then it is more likely that the break out is valid and will carry on. 

 However, the higher potential of profit becomes, the more tempting you will be, thus it will become more difficult for you to keep it. Here are some ways you can follow so that to capture a major trend and keep it up will be not so difficult for you. 

 When you open your trade, you keep your stop loss point at its earliest level and wait. The market will sooner or later turn out to be overbought or oversold. When the market become overbought or oversold, you can take 50% of the profit out and wait for the remaining. So, if the trends carry on, you are still on the board. If it does not carry on, you already keep aside 50% of the profit and you can just wait to enter the trade again. 

 When the market makes a come back, you should observe for a come back rally to the 20 MA. The average of the mid Bollinger Band usually indicates a good time to place the sell order. And during the current major trends, watch out on how it response along with the support and resistance levels. The 50% profit you have kept aside is your additional earning and you may use it to control your stop loss point back. 

 When you realize you have already kept some amount of profit and upbeat in the major trends, to keep up the long term position of the major trends will not be difficult for you. 

 To ‘clear up’ radically and waiting for a rebound to the 20 days MA before you enter the position again is a strategy for you to make even more profit. This way of strategy incurs higher risk, but with your current profits you have kept aside, you may consider to lift up further your stop loss point. 

 The strategies are rather easy. Once you are on the major trend, to retain it will be much easier with practices which in turn will increase your risk and reward in the forex market as a whole. And in fact, the long term trend traders spend less time on trading in comparison to the short term trend traders, day traders, or swing traders.