The trend is the movement of the price of the assets and their derivatives like CFDs. IronFX reviews suggest that understanding trends are crucial for traders.
The movement of the market can be predicted with a proper study of trends. It provides you with insight that assists you in making trading decisions.
Ironfx provides you with tools to perform this trend analysis. They also provide trend analysis carried out by their experts to assist you. It is useful for customers as per the Ironfx review.
Let’s understand how trends help you in making better trading decisions.
The trend, in simple terms, is the movement of the value of the market, assets, and securities. The traders use these trends to decide whether to trade or not.
Ironfx provides you with data and analysis so that you can better understand the trends. It facilitates your decision-making. Trends and analysis of these trends provided are said to be helpful in the Ironfx review.
There are two basic types of trends, uptrend and downtrend.
• Uptrend: It is when the overall price movement of assets or derivatives is in an upward direction. It indicates an increase in value.
• Downtrend: It is the downward movement of the price of the asset or derivatives. It indicated a decrease in the value.
This trend can be identified using various methods which are divided into two broad categories. These categories are as follows:
Technical analysis:
In CFD trading, technical analysis is crucial as it is used to determine the price movement. Here the trend is based on the price and volume data for the assets and derivatives. Used to calculate market value.
Fundamental analysis:
In CFD trading, fundamental analysis is used to determine the intrinsic value of assets and derivatives. It used social, political, economical, and other factors to determine the value of the asset.