The Trend is Your Friend Trend

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Trend analysis is based on the idea that what has happened in the past gives
traders an idea of what will happen in the future.
Although this may seem pretty basic, being able to identify when a pair is in a
trend and when it isn't will help you to increase your chances to profit
consistently in the Forex market.
When you can identify a trend, you can estimate what direction the rate of a
currency pair is going to go in. You should exploit the direction of the trend you
identify by placing a trade in that direction.
If it’s an uptrend, meaning that the rate is increasing, buying the currency pair will
give you a better probability for profit. If it’s a downtrend, meaning that the rate
is decreasing, selling the currency pair will give you a better chance of making
money.
How do I identify a trend? What are the characteristics of a trend?
The simplest way to identify a trend is through the distinct patterns that the price
forms. These can tell you if the market is moving in an uptrend or downtrend.
Identifying a Forex Trend
When a trend is taking place in a Forex pair, the price movements start to form
peaks and valleys in the chart of that pair, which are easily identified.
In an uptrend, the price movements form a series of higher peaks and higher
valleys.
(Higher Highs and Higher Lows.)
Since a picture’s worth a thousand words, lets look at the following chart:
This chart suggests that the trader should buy the currency pair (and close the
trade by selling at profit after the rate rises).