Enter Trading at a More Favorable Price

When determining a foreign exchange currency that's in an bullish trend, the strategy of long the fall could be put to beneficial use. The strategy is that as the foreign exchange currency keeps to trade higher, invariably there will be moves back / retracements / dips that come. While those occur, the Forex trader is demonstrated with an chance to entry the trade (long on a dip) in the guidance of the market trend at a more opportune market price.
Take a see at the Daily Forex chart of the USDollar/SwissFranc below for a instance on this strategy…

To time our entrance into the market trade, an oscillator indicator could be applied so we could entry when bearish (downside) momentum shifts to bullish (upside) momentum. In that example we took Slow Stochastic indicators. (Note the timing of the entrance with the Slow Stochastic indicators crossing over to the upper side in the circles.) While buying on falls the stop could be posted just under the lowest candlestick or tail that came on the retracement or dip.
In a bearish trend, the method would be reversed. Take a see at the Daily Forex chart of the Euro Dollar below…

As market price action comes up, we'd short the Rally back into the bearish trend. In that instance we picked out Slow Stochastic indicators again to determine when bullish momentum has switched to the downside. We'd entry on the bearish crossing over expressed in the circles. Stops would be located just above the highest level in the rally to the upper side.