The Truth About FOREX Trends

Market Flow Analysis Method (MFAM)

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) in existence. 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 Markets ALWAYS 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)

Three Primary Waves (TRENDS) in the FOREX Markets!

There are only Three (3) Primary Waves (TRENDS) in the FOREX Markets:
1) UP Trend A Series of Higher Highs and Higher Lows 2) DOWN Trend A Series of Lower Highs and Lower Lows 3) SIDEWAYS Trend A 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 Stages of the Trend and not after the fact.

Market Flow Analysis Method (MFAM)

The UP Trend Market Flow Process

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

HIGH AL AL
AL
(Active Low)

MRAL
(Most Recent Active Low)

LOW
(Lowest LOW)

Market Flow Analysis Method (MFAM)

The DOWN Trend Market Flow Process

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

AH
LOW

(Most Recent Active High)

MRAH NL NL
NL

Market Flow Analysis Method (MFAM)

The SIDEWAYS Market

A series of relatively Equal Highs and Equal Lows

HIGH

LOW

Market Flow Analysis Method (MFAM)

An UP Trend Reversing Into A DOWN Trend

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

NH
NH MRAL
(Most Recent Active Low)

AH

NL

AL AL
The UP Trend is potentially Reversing into a DOWN Trend at the Downside Penetration of the MRAL

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.

Market Flow Analysis Method (MFAM)

A DOWN Trend Reversing Into An UP Trend

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

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

NH

MRAH

NL NL LL
AL

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.