US-China trade talks have stirred cautious optimism, but a lack of concrete policy shifts is keeping markets on alert. This analysis looks at how the yuan is reacting to headline-driven sentiment, key technical signals, and what might guide the next move.

Cautious optimism as US-China trade talks resume

The Chinese yuan traded within a narrow band on Wednesday, with investor sentiment subdued amid cautious optimism over reported progress in US-China trade discussions.

By 2:53 AM GMT, the onshore yuan was little changed, holding near 7.1872 against the US dollar, while the offshore rate hovered around 7.1873 — a modest 0.04% increase.

Despite upbeat headlines from Tuesday’s dialogue, markets appeared hesitant. The initial optimism seemed largely priced in, as traders awaited firm policy measures to confirm a shift in sentiment.

Officials from both nations announced a tentative framework aimed at reviving the Geneva trade agreement and easing restrictions on China’s rare earth exports.

However, the absence of concrete details limited investor risk appetite, especially among forex participants wary of prolonged geopolitical uncertainty.

The People’s Bank of China (PBoC) set the daily reference rate at 7.1815 — its firmest fixing since 2 April — allowing for a trading range between 7.0382 and 7.3251, within the usual 2% band.

Analysts at Citi noted that the central bank’s continued focus on maintaining the midpoint near the 7.2 level likely reflects Beijing’s intent to reinforce currency stability in the face of global headwinds.

While market sentiment has edged higher, Singapore-based DBS cautioned that the market may have already absorbed most of the positive momentum from the latest US-China developments.

Without clear commitments regarding tariff reductions or a timeline for easing rare earth restrictions, they argue, the yuan is unlikely to experience any significant directional shift in the near term.

Technical analysis: USD/CNH stalls as traders await direction

The USD/CNH currency pair is currently consolidating near the 7.18675 mark, following a volatile intraday session.

After reaching a low of 7.17764, the pair rebounded towards resistance at 7.19421 before being rejected, indicating hesitation among traders.

Since that move, price action has remained confined within a narrow range between 7.18182 and 7.18943 — reflecting a broader market pause ahead of key macroeconomic triggers.

Momentum indicators support this outlook: the MACD histogram is narrowing, and the MACD line is flattening just above the signal line, pointing to waning bullish momentum.

Markets await a breakout from technical standoff

Additionally, short-term moving averages (5- and 10-period) are converging towards the 30-period average, signalling a potential equilibrium phase.

The pair currently trades just below minor resistance (7.188–7.190). A clear break above 7.19421 could pave the way for a push towards the 7.20 psychological barrier.

On the downside, failure to maintain current levels might trigger a retest of the 7.177 support zone.

Unless there is a decisive update regarding US-China tariffs or rare earth export policies, traders are likely to remain cautious.

As a result, the yuan’s price movement will continue to hinge on central bank guidance and geopolitical headlines in the sessions ahead.

Click here to open account and start trading.

Dear Client,

To provide a favorable trading environment to our clients, VT Markets will modify the trading setting of Index products. Please refer to the following details:

1. Index BVSPX products leverage will be adjusted to 50:1.

The above data is for reference only; please refer to the MT4 and MT5 software for specific data.

Friendly reminders:

1. Except for leverage, all other transaction details remain unchanged.

2. The margin requirement of the trade may be affected by this adjustment. Please make sure the funds in your account are sufficient to hold the position before this adjustment.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Discover the Best Time to Buy and Sell Stocks

In this article, we’ll explore how timing plays a critical role in stock trading. Whether you’re a beginner or an experienced investor, knowing when to buy and sell stocks can be key to maximizing returns. We’ll break down the factors that influence the market, the best times to enter and exit trades, and how to use market trends to make informed decisions. With the right strategy and insights, you can significantly improve your trading success.

What Is Stock Trading?

Stock trading involves buying and selling shares to capitalize on price fluctuations. Successful traders aim to purchase stocks when prices are low and sell them when prices rise. By owning shares in companies, investors gain partial ownership and can later sell those shares for a profit if the company’s value increases. Conversely, traders may sell their shares at a loss if market conditions aren’t favorable. Stock trading can be executed through exchanges such as the New York Stock Exchange (NYSE) or NASDAQ, either in person or via online platforms.

Knowing the best time to buy and sell stocks is essential for maximizing profits and minimizing risks. By understanding market conditions and timing your trades wisely, you can significantly improve your chances of trading success.

Discover the top 10 largest stock exchanges in the world by market cap. 

When Is the Best Time to Buy and Sell Stocks?

Timing plays a crucial role in stock trading, and while there isn’t a one-size-fits-all answer, the first 30 minutes after the market opens can be an ideal window for many traders. This period often experiences high volatility as investors react to overnight news, presenting both opportunities and risks. For day traders, this can be a prime time to buy and sell stocks, while long-term investors may prefer a more stable market environment later in the day. Understanding when to buy and sell stocks depends on your trading strategy, market conditions, and the type of stock you’re trading.

Discover the stock market opening and closing times in the world. 

The Best Time to Buy Stocks

Knowing when to buy stocks is a critical factor in building a successful investment strategy. The right time to make a purchase can significantly affect the potential return on your investment. Whether you’re aiming for long-term growth or short-term gains, identifying the best time to buy stocks requires careful analysis of market conditions, stock trends, and external economic factors.

1. Undervalued Stocks During Market Dips

The best time to buy stocks is often when they are undervalued, particularly during market corrections or dips. Stocks may become cheaper temporarily but have the potential to recover, yielding profitable returns once market conditions stabilize.

2. Optimistic Market Sentiment

Buying stocks during an optimistic market sentiment, particularly in the recovery phase following a recession or economic downturn, can also be a great strategy. In such times, investor confidence generally rises, driving stock prices upward.

3. Using Technical Analysis to Identify Buy Opportunities

Traders often use technical analysis to determine the best time to buy stocks. Indicators like price trends, moving averages, and support levels can help identify price dips or market bottoms, making it easier to purchase stocks at a discount.

4. Seasonal Patterns: The “Santa Claus Rally”

Many investors watch for the “Santa Claus Rally” in December, a seasonal trend where stock prices tend to perform better due to year-end optimism and holiday spending.

5. Optimal Time of Day: Monday Morning

Monday mornings can be a good time to buy stocks as trading volume is often higher. Investors typically react to news from the weekend, making it a favorable moment for potential opportunities.

Example: During the early months of the 2020 pandemic, stocks like Amazon, Microsoft, and Tesla experienced significant drops. However, investors who bought in at lower prices during the downturn saw their investments grow significantly as the market recovered.

The Best Time to Sell Stocks

Knowing when to sell stocks is just as important as knowing when to buy. Selling at the right time allows you to lock in profits, minimize losses, and protect your overall portfolio from downturns. However, this decision requires careful consideration of market trends, stock performance, and your individual investment goals.

1. Selling After Achieving Your Price Target

One of the best times to sell is when a stock reaches your predetermined price target. Setting a price target based on fundamental analysis or technical analysis ensures you’re exiting the trade at a level that meets your financial goals. Selling once your target is met can help you avoid the risk of emotional decision-making or waiting too long for further gains.

2. When Market Conditions Show Signs of a Downturn

If you notice signs of a bearish trend or a broader market correction, it might be time to sell and protect your gains. In a declining market, stock prices can drop rapidly, and selling early can help you avoid substantial losses. Pay attention to key indicators, such as moving averages or declining economic data, to determine when it’s time to exit.

3. Recognizing Overvaluation

Stocks may become overvalued if they experience rapid price increases due to hype or speculation. When a stock is priced significantly higher than its intrinsic value, it could signal that it’s time to sell. Watching for signs of overvaluation, like price-to-earnings (P/E) ratios reaching extreme levels, can help you make the right selling decision.

4. Rebalancing Your Portfolio

Another key time to sell stocks is during periodic portfolio rebalancing. Over time, certain stocks may make up too large a portion of your portfolio, exposing you to unnecessary risk. Selling stocks to maintain a diversified portfolio can help balance your investment strategy and ensure that your portfolio aligns with your risk tolerance and financial objectives.

5. When the Stock No Longer Aligns with Your Investment Goals

Sometimes, your investment goals may change, or new information may surface that affects the outlook for your stock. If a stock no longer aligns with your strategy or its fundamentals weaken, it may be time to sell. For instance, if the company is facing management issues or its growth prospects diminish, it could signal that the best time to sell has arrived.

Example: During the dot-com bubble of the late 1990s, many investors who sold their stocks before the crash managed to avoid the severe losses that followed. They recognized signs of overvaluation and took advantage of high prices to sell before the market corrected.

Factors That Influence the Best Time to Buy and Sell Stocks

Several factors can impact the best time to buy and sell stocks:

1. Market Conditions

The overall state of the economy or stock market (bullish or bearish) heavily influences the timing of your trades. In a bull market, prices generally rise, making it a favorable time to sell. Conversely, in a bear market, prices typically fall, which might present an opportunity to buy undervalued stocks.

2. Economic Events

Economic indicators such as GDP growth, inflation rates, and interest rates have a significant effect on stock prices. For example, when the Federal Reserve raises interest rates, it could negatively impact stock prices, presenting a time to sell.

3. Company News

Corporate earnings reports, leadership changes, and product launches can cause stock prices to spike or drop. Being aware of these events can help you decide when to buy or sell stocks in relation to these catalysts.

4. Technical Indicators

Tools like moving averages, Relative Strength Index (RSI), and Bollinger Bands are often used to identify market trends and potential buy or sell signals.

5. Investor Sentiment

Public perception of the market and individual stocks plays a major role in determining when to buy or sell. News stories, investor sentiment, and market rumors can all trigger buying or selling decisions.

In Summary

The best time to buy and sell stocks depends on market conditions, personal goals, and careful analysis. Buying when stocks are undervalued or during market recoveries can be a good strategy, while selling should be done when your investment objectives are met or market conditions suggest a downturn. Timing is essential for maximizing returns and minimizing risks.  However, with the right analysis and an understanding of market trends, traders can make informed decisions about the best time to buy and sell stock to maximize their returns.  

Start Buying and Selling Stocks Today with VT Markets

VT Markets provides traders with intuitive platforms—MetaTrader 4 and MetaTrader 5—equipped with advanced features to enhance stock trading. With fast trade execution, real-time market insights, and detailed analytical tools, these platforms allow traders to make smarter, timely decisions. Whether you’re looking to identify the best time to buy or sell stocks, VT Markets offers the resources you need for success, including a comprehensive Help Centre for self-guided support.

Create an account with VT Markets now and begin your journey in stock trading today.

Frequently Asked Questions (FAQs)

1. When is the best time to buy and sell stocks?

The first 30 minutes after the market opens can be an ideal time for many traders due to high volatility and reaction to overnight news. Day traders often take advantage of this, while long-term investors may prefer a more stable market later in the day. Timing depends on your strategy, market conditions, and the type of stock you’re trading.

2. When is the best time to buy stocks?

The best time to buy stocks is when:

• Undervalued Stocks During Market Dips
• Optimistic Market Sentiment
• Using Technical Analysis to Identify Buy Opportunities
• Seasonal Patterns: The “Santa Claus Rally”
• Optimal Time of Day: Monday Morning

3. When is the best time to sell stocks?

The best time to sell stocks is when:

• Selling After Achieving Your Price Target
• When Market Conditions Show Signs of a Downturn
• Recognizing Overvaluation
• Rebalancing Your Portfolio
• When the Stock No Longer Aligns with Your Investment Goals

4. Is it a good strategy to buy stocks at market open?

Buying stocks at market open can be beneficial due to increased volatility and trading volume. However, it’s important to use analysis and avoid making impulsive decisions based on initial market reactions.

5. Is it better to buy stocks in the morning or afternoon?

The morning is generally considered a better time to buy stocks because the market tends to have higher volume and volatility early on, providing more opportunities. However, afternoon trading can offer a more stable environment, depending on market conditions.

6. Should I buy stocks when the market is closed?

While it’s not possible to buy stocks during regular market hours when the market is closed, many brokers offer after-hours trading. However, keep in mind that trading during after-hours can be riskier due to lower liquidity and higher volatility.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

10 June 2025, Sydney, Australia – VT Markets celebrated a first season in partnership with Newcastle United by visiting the North East of England to congratulate the club on a history-making campaign, which saw the Magpies secure a return to the UEFA Champions League.  

The achievement marked another milestone in Newcastle United’s modern era, following Carabao Cup success at Wembley in March; the club’s first domestic trophy win in 70 years.  

The Magpies’ Champions League qualification also coincides with VT Markets’ 10th anniversary. To celebrate shared success, VT Markets hosted a premier client experience in Newcastle, headlined by a visit to St. James’ Park.

As the club’s Official Financial Trading Partner, VT Markets’ guests were welcomed to Tyneside with a bespoke behind-the-scenes itinerary, designed to showcase Newcastle United both on the pitch and at the heart of the community.

Guests were guided on an exclusive tour of the club’s training facility with legends, Rob Lee and Kevin Nolan, gaining insight into a high-performance environment which has been the basis for Eddie Howe and his team’s success this season. The visit continued with a VIP matchday experience at the season-concluding fixture against Everton with club legend Mick Quinn dropping in with a pre-match Q&A.

Dandelyn Koh, Global Brand and PR Lead at VT Markets reflected, “We are incredibly proud of Newcastle United and what they’ve accomplished this season. This is more than a football milestone— it’s a story about defying expectations, about choosing progress over comfort, and about staying focused under pressure.”

Peter Silverstone, Newcastle United’s Chief Commercial Officer, added: “Our partnership with VT Markets has given us more opportunities to engage with our supporters globally.

“Being able to welcome VT Markets to St. James’ Park this season has created new relationships and strengthened our connection with one of our valued partners.”

For media enquiries and sponsorship opportunities, please email media@vtmarkets.com, or contact:

Dandelyn Koh

Global Brand & PR Lead

dandelyn.koh@vtmarkets.com

Brenda Wong

Assistant Manager, Global PR & Communications

brenda.wong@vtmarkets.com

Advanced Real-Time Protection Ensures Uninterrupted and Secure Trading for Clients

10 June 2025 – Sydney, Australia – VT Markets, a leading multi-asset brokerage, today announced the rollout of a major upgrade to its risk management system, unveiling a fully integrated Anti-Fraud Platform powered by intelligent automation and advanced real-time monitoring technologies. This strategic enhancement marks a significant milestone in VT Markets’ ongoing efforts to deliver a safer, more transparent, and client-first trading environment. By embedding proactive fraud detection directly into its infrastructure, VT Markets is setting a new benchmark for security across global financial markets.

The upgraded Anti-Fraud Platform utilizes an intelligent Rule Engine powered by nine advanced detection rules, enabling the system to proactively identify suspicious activities, detect potential fraud, and monitor trading patterns in real-time. This robust, automated risk management system is supported by a specialized back-office investigation mechanism, ensuring that potential threats are swiftly analyzed and addressed, all without disrupting the client experience.

With the implementation of this next-generation Anti-Fraud Platform, VT Markets is proud to deliver a host of client benefits, including:

• Enhanced Real-Time Account Protection: Continuous, round-the-clock monitoring of accounts to safeguard against fraudulent activities
• Faster Detection and Immediate Action: Proactive identification of risks, coupled with quick responses to mitigate threats.
• Seamless Trading Experience: Uninterrupted, secure access to trading platforms without compromising performance.
• Increased Transparency and Trust: Clear, open communication of security measures and proactive steps to ensure peace of mind.

The upgrade to VT Market’s anti-fraud risk system addresses the dynamic and evolving challenges of security in today’s financial landscape. This enhancement allows for the proactive detection and resolution of potential threats in real-time, ensuring that clients’ trading activities remain protected at all times. By utilizing advanced automation and sophisticated monitoring tools, the company has strengthened its ability to safeguard client assets while maintaining a seamless and uninterrupted trading experience.

This upgrade arrives in the same year VT Markets steps into a new decade, promising continued innovation and enhanced capabilities as the company strengthens its commitment to providing a secure and reliable trading experience. With this revolutionary Anti-Fraud upgrade, VT Markets reinforces its position as a trusted leader in the industry, ensuring that clients can trade with complete confidence.

About VT Markets

VT Markets is a regulated multi-asset broker with a presence in over 160 countries as of today. It has earned numerous international accolades including Best Online Trading and Fastest Growing Broker. In line with its mission to make trading accessible to all, VT Markets offers comprehensive access to over 1,000 financial instruments and clients benefit from a seamless trading experience via its award-winning mobile application.

For more information, please visit the official VT Markets website or email us at info@vtmarkets.com. Alternatively, follow VT Markets on Facebook, Instagram, or LinkedIn.

For media enquiries and sponsorship opportunities, please email media@vtmarkets.com, or contact:

Dandelyn Koh 

Global Brand & PR Lead

dandelyn.koh@vtmarkets.com  

Brenda Wong 

Assistant Manager, Global PR & Communications

brenda.wong@vtmarkets.com 

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

What Is Trend Trading? A Step-by-Step Guide to Trading With the Trend

In this article, you’ll learn what trend trading is, how it works, and how to trade with the trend practically and structured. From identifying market direction to executing trades with discipline, we’ll guide you through each essential step. Whether you’re looking to follow short-term momentum or long-term price movement, this comprehensive guide will help you build a strong foundation in trend trading.

What Is Trend Trading?

Trend trading is a popular trading strategy where traders aim to profit by analyzing and following the prevailing market direction. Essentially, trend traders seek to identify upward or downward price movements and then align their trades accordingly to capture gains as long as the momentum continues.

While day trading focuses on short-term movements within a single day, trend trading usually spans days, weeks, or even months, providing clarity and consistency in trading decisions.

How Does Trend Trading Work?

Trend trading revolves around one simple principle: “The trend is your friend.” By identifying sustained market movements, traders enter positions in alignment with the direction of the trend and remain invested until signals indicate the trend has reversed.

For instance, if a stock price consistently moves upward, trend traders will typically buy and hold, aiming to maximize profits until indicators suggest a reversal. Conversely, if prices consistently decline, traders may short-sell the asset or apply bearish strategies to benefit from the downward trend.

Example: Imagine a trader who identified the bullish trend in Tesla shares (TSLA) throughout 2024. The stock price surged from approximately $250 in January 2024 to around $430 in December, providing trend traders ample opportunity to ride significant gains over the year.

How to Identify a Trend in Trading?

Recognizing a clear market trend is essential for successful trend trading. Here are three effective ways traders use to spot trends in real time:

1. Price Action Analysis

Price action forms the foundation of trend identification. Traders study how the market moves without relying on indicators, focusing on key structural patterns:

• Uptrend: A sequence of higher highs and higher lows.
• Downtrend: A series of lower highs and lower lows.
• Sideways trend: Price moves between horizontal support and resistance.

Example: If the S&P 500 consistently pushes to new highs with shallow pullbacks, this pattern suggests a strong bullish trend.

2. Trendlines

Trendlines are drawn on the chart to connect swing highs or lows and visually map the trend direction:

• In an uptrend, draw a line along rising swing lows.
• In a downtrend, connect falling swing highs.
• These lines help identify support or resistance and offer guidance on possible breakouts or breakdowns.

Tip: The more times a trendline is tested without breaking, the stronger it is considered by traders.

3. Volume Analysis

Volume provides insight into the strength behind a price move:

• Increasing volume during a trend continuation confirms strong market interest.
• Falling volume during a breakout may suggest a weaker or unsustainable move.
• Sudden volume spikes at key price levels can signal potential trend reversals.

Discover the top 10 trading chart patterns that every trader should learn.

How to Trade With the Trend?

Trend trading works best when approached with structure and discipline. Follow these steps to build a strong foundation:

1. Understand How Trend Trading Works

Before diving in, learn what trend trading is, how it differs from other strategies, and why following market direction can lead to consistent results. Understanding trend continuation, reversal signals, and momentum shifts is essential for making informed decisions.

2. Choose a Reliable Broker

Select a regulated broker that offers low spreads, fast execution, and access to real-time data and charting tools. A strong platform like VT Markets provides the analytical capabilities that trend traders need, including integrated indicators, drawing tools, and trade management features.

3. Identify the Trend

Use price action, trendlines, or indicators like moving averages to determine whether the market is trending up, down, or sideways. Look for confirmation based on swing highs/lows or other supporting signals across multiple timeframes.

4. Wait for Entry Signals

Patience is crucial. Avoid jumping in too early. Instead, wait for pullbacks, consolidations, or breakout confirmations that align with the overall trend direction. These are typically more reliable entry points.

5. Enter the Trade

Once a valid setup forms, open your position in the direction of the trend. Ensure that your entry, stop-loss, and take-profit levels are defined clearly before executing the trade to limit emotional decision-making.

6. Implement Risk Management Strategies

Risk management is critical in trend trading. Use appropriate position sizing, stop-losses, and risk-reward ratios to protect your capital. For example, risking 1–2% per trade helps ensure long-term sustainability even if some trades go against you.

7. Stay Informed and Updated

Trends don’t last forever. Monitor price behavior, market sentiment, and news events that could impact your trade. Be ready to adjust or exit if the trend shows signs of weakening or reversing.

Common Indicators Used in Trend Trading

Technical indicators play a vital role in helping traders confirm trends, time their entries and exits, and manage risk more effectively. Below are some of the most commonly used indicators in trend trading, each serving a unique purpose:

1. Moving Averages (MA)

Moving averages smooth out price data by calculating the average closing price over a specific time. This helps traders filter out short-term fluctuations and focus on the broader trend direction.

• Simple Moving Average (SMA): SMA is the most straightforward type, calculating the average price over a set number of periods.
• Exponential Moving Average (EMA): EMA gives more weight to recent price data, making it more responsive to recent price movements.

A popular trend signal is the moving average crossover, such as when the 50-day EMA crosses above the 200-day EMA, often referred to as a golden cross (bullish), while the opposite is known as a death cross (bearish).

2. Moving Average Convergence Divergence (MACD)

MACD helps traders understand both the momentum and direction of a trend. It is derived by subtracting a longer-term EMA from a shorter-term EMA, typically the 26-day and 12-day. When the MACD line crosses above the signal line, it may indicate the start of a bullish trend; when it crosses below, it may suggest a bearish reversal.

The MACD histogram also reflects trend strength—larger bars typically signal stronger momentum.

3. Relative Strength Index (RSI)

RSI is a momentum oscillator that measures the speed and change of price movements, ranging from 0 to 100. It is typically used to identify overbought or oversold conditions:

• RSI above 70 often indicates the asset is overbought (potential reversal or correction).
• RSI below 30 suggests the asset may be oversold (possible bounce or trend start).

In trend trading, RSI can also be used to confirm the strength of a trend — for example, if RSI stays above 50 during an uptrend, it supports bullish strength.

4. Bollinger Bands

Bollinger Bands consist of a simple moving average with upper and lower bands placed two standard deviations away from the average. These bands expand and contract based on market volatility.

• When the bands tighten, it signals low volatility and potential breakout conditions.
• When price touches the upper band in an uptrend or the lower band in a downtrend, it can confirm trend continuation.

Bollinger Bands are particularly useful in spotting trend consolidation and breakout points.

In Summary

Trend trading is a widely used strategy that focuses on identifying and following market direction. It offers traders a structured approach to decision-making, emphasizing patience, discipline, and clarity. By understanding market behavior and applying consistent techniques, traders can navigate trends with greater confidence and control. Whether you’re just starting or looking to improve your approach, trend trading provides a solid foundation for long-term success.

Start Trend Trading Today With VT Markets

VT Markets provides traders with an advanced, user-friendly platform—MetaTrader 4 and MetaTrader 5—equipped with powerful analytical tools to simplify trend trading. With seamless execution, in-depth market analysis features, and a comprehensive Help Centre to support self-guided learning, VT Markets empowers traders to confidently trade with the trend.

Open an account with VT Markets today and start trading with the trend.

Frequently Asked Questions (FAQs)

1. What is trend trading?

Trend trading is a strategy that involves identifying the direction of market movement—upward, downward, or sideways—and placing trades that align with that direction to capture potential profits over time.

2. How to trade with the trend?

Follow these steps to trade with the trend effectively:

• Understand trend trading: Learn how trends form and why following them can improve consistency.
• Choose a reliable broker: Use platforms like MetaTrader 4 or 5 for real-time data and strong analysis tools.
• Identify the trend: Analyze price action and trendlines to determine market direction.
• Wait for entry signals: Look for pullbacks, consolidations, or breakouts that align with the trend.
• Enter the trade: Set clear entry, stop-loss, and take-profit levels before executing.
• Apply risk management: Use proper position sizing and risk-reward ratios to protect your capital.
• Stay updated: Monitor market news and price movements to manage or exit your trade as needed.

3. Does trend trading work?

Yes, trend trading can be effective when applied with discipline, patience, and the right tools. Many professional traders use trend-following strategies to capture larger price movements and reduce noise from short-term volatility.

4. How to find a trend in trading?

Trends can be identified by analyzing price patterns, using trendlines, or observing market structure, such as higher highs and higher lows. Indicators like moving averages can also help confirm the trend direction.

5. Is trend trading profitable?

Trend trading can be profitable, particularly in markets with strong and sustained movements. However, like any trading strategy, it carries risk. Misreading trends or entering too late can lead to losses. Profitability depends on accurate trend identification, disciplined execution, and consistent risk management.

6. What is the most common mistake in trend trading?

The most common mistake is ignoring signals indicating trend reversals or holding onto losing positions too long in anticipation that the original trend will resume.

7. How long does a market trend usually last?

Market trends can vary greatly, lasting from days to months or even years. It depends largely on broader economic factors, market sentiment, and specific asset characteristics.

8. Can beginners succeed at trend trading?

Yes, beginners can succeed at trend trading by starting with a clear strategy, practicing on a demo account, applying disciplined risk management, and continuously learning about market behavior and trends.

9. How to identify a trend in day trading?

In day trading, trends are identified on shorter timeframes like 5-minute or 15-minute charts. Look for consistent price movement in one direction, supported by volume, price structure, and tools like intraday trendlines or VWAP.

As we enter mid-June, markets are navigating a complex landscape marked by trade tensions, central bank policies, and key economic indicators. Investors are closely monitoring developments that could influence market dynamics in the coming week.

KEY INDICATORS

Foreign exchange market

• _{The European Central Bank’s recent 25 basis point rate cut has impacted the euro’s performance.}
• _{Investors are assessing the implications for EUR/USD and EUR/GBP pairs.}
• _{US CPI data (11 June): The upcoming US Consumer Price Index report is anticipated to show a year-over-year increase of 2.3%.}
• _{President Trump’s decision to delay proposed 50% tariffs on European Union imports until 9 July has provided temporary relief to markets.}

Commodities and equities

• _{The S&P 500 and Nasdaq have shown resilience, with investors focusing on upcoming earnings reports from companies like Oracle (11 June) and Adobe (12 June).}
• _{Apple’s Worldwide Developers Conference is expected to unveil updates to its operating systems and potentially new hardware, which could influence the tech sector.}
• _{WTI crude oil prices have declined to four-year lows as OPEC+ accelerates production hikes, raising concerns over potential oversupply in the market.}
• _{Gold prices are experiencing slight declines as the US dollar gains strength, impacting demand for the precious metal.}

Asian markets and key events

• _{Investors are awaiting Japan’s latest economic data releases, including machinery orders and producer price index figures, to gauge the country’s economic health.}
• _{China’s upcoming trade balance report will provide insights into the country’s export and import activities, influencing regional market sentiment.}
• _{11 June: US Consumer Price Index (CPI) report.}
• _{11 June: Oracle earnings release.}
• _{12 June: Adobe earnings release.}
• _{13 June: Preliminary US Consumer Sentiment Index.}

MARKET MOVERS

Nikkei 225

Technical breakout

• _{The Nikkei 225 is approaching a key resistance zone around 38,280, which has previously acted as a significant barrier. A decisive breakout above this level could signal further bullish momentum.}
• _{Support level: On the downside, immediate support is observed near 37,160. A breach below this level may indicate a potential trend reversal or deeper correction.}

Target projection

• _{Upside target: Should the index break above 38,280, the next target could be around 40,000, aligning with forecasts that anticipate a 4.6% rise by the end of June 2025.}
• _{Downside target: Conversely, if the index fails to hold above 37,160, it may retreat towards the 36,000 support level.}

Opening expectation

• _{The Nikkei 225 closed at 37,741.61 on Friday, 6 June 2025, reflecting a 0.5% gain amid optimism over renewed US–China trade talks.}
• _{Given this positive sentiment, the index may open the week with a bullish bias, potentially testing the 38,000 level.}

Support zone

• _{Primary support: 37,160 – A critical level that has provided support in recent sessions.}
• _{Secondary support: 36,000 – A more substantial support zone that could be tested if the primary support fails.}

Strategy

• _{Bullish scenario: If the index breaks above 38,280, consider long positions targeting 40,000, with a stop-loss below 37,160 to manage risk.}
• _{Trade opportunity: Target 1: 38,000, Target 2: 38,200.}

DAX 40

Technical breakout

• _{Resistance level: The DAX 40 is approaching a key resistance zone around 24,390, which has previously acted as a significant barrier. A decisive breakout above this level could signal further bullish momentum.}
• _{Support level: On the downside, immediate support is observed near 24,150. A breach below this level may indicate a potential trend reversal or deeper correction.}

Target projection

• _{Should the index break above 24,390, the next target could be around 24,500, aligning with recent technical analyses.}
• _{Downside target: Conversely, if the index fails to hold above 24,150, it may retreat towards the 24,000 support level, as suggested by recent wave analyses.}

Opening expectation

• _{The DAX 40 closed at 24,258.74 on Friday, 6 June 2025, reflecting a 0.3% decline amid cautious sentiment ahead of the US jobs report.}
• _{Given this backdrop, the index may open the week with a neutral to slightly bearish bias, potentially testing the 24,150 support level.}

Support zone

• _{Primary support: 24,150 – A critical level that has provided support in recent sessions.}
• _{Secondary support: 24,000 – A more substantial support zone that could be tested if the primary support fails.}

Strategy

• _{Bullish scenario: If the index breaks above 24,390, consider long positions targeting 24,500, with a stop-loss below 24,150 to manage risk.}
• _{Trade opportunity: Target 1: 24,450, Target 2: 24,650}.

Hang Seng

Technical breakout

• _{Resistance levels: The HSI is approaching a critical resistance zone at 24,000, a level that has previously acted as a significant barrier. A decisive breakout above this could signal further bullish momentum.}
• ^{Support levels: Immediate support is observed near 23,500, with a more substantial support zone at 23,000. A breach below these levels may indicate a potential trend reversal or deeper correction.}

Target projection

• _{Upside targets: Should the index break above 24,000, the next target could be around 24,874, aligning with the March high. A sustained move beyond this may open the path towards 26,000.}
• _{Downside targets: Conversely, if the index fails to hold above 23,500, it may retreat towards the 23,000 support level, with further downside potential to 22,000 if bearish momentum intensifies.}

Opening expectation

• _{The HSI closed at 23,846 on Friday, 6 June 2025.}
• _{Given the recent positive sentiment driven by optimism over US-China trade talks and a pickup in China’s services sector activity, the index may open the week with a bullish bias, potentially testing the 24,000 resistance level.}

Support zone

• _{Primary support: 23,500 – A critical level that has provided support in recent sessions.}
• _{Secondary support: 23,000 – A more substantial support zone that could be tested if the primary support fails.}

Strategy

• _{Bullish scenario: If the index breaks above 24,000, consider long positions targeting 24,874, with a stop-loss below 23,500 to manage risk.}
• _{Trade opportunity: Target 1: 24,000, Target 2: 24,500.}

NEWS HEADLINES

Global political developments stir market sentiment

• _{US president Trump’s administration has implemented a new travel ban effective 9 June, fully restricting entry to the US from 12 countries, including Afghanistan, Iran, and Libya.}
• _{Partial visa restrictions have also been applied to seven additional nations such as Cuba and Venezuela, citing national security and visa overstay concerns.}
• _{In the UK, internal tensions are growing within Prime Minister Sir Keir Starmer’s cabinet ahead of the 11 June spending review, potentially impacting fiscal direction.}
• _{Chinese Foreign Minister Wang Yi is set to attend high-level China–Africa cooperation meetings and the China–Africa Economic and Trade Expo in Hunan from 10 to 12 June, reinforcing Beijing’s ties with African nations.}

Market moves: Currency, oil and equities react to shifting fundamentals

• _{The US dollar is under pressure and heading for a weekly loss amid signs of domestic economic weakness and lingering trade policy uncertainty.}
• _{Most major currencies rallied late last week following news of an extended dialogue between President Trump and President Xi Jinping.}
• _{Key US economic data—such as wholesale inventories and sales figures due on 9 June—could influence short-term currency trends.}
• _{Brent crude has climbed to $65.34 per barrel, marking an 8.5% rise from 2025 lows, supported by strong refinery margins and tight inventories despite higher OPEC+ output.}
• _{Trafigura has warned of continued commodity market volatility in H2 2025 due to geopolitical tensions, tariffs, and inflation risks.}
• _{Equity markets are showing resilience, with the S&P 500’s advance–decline line hitting new highs, suggesting broad-based participation in the rally.}

Asia on the move: Optimism amid mixed signals

• _{Asian stock markets are mostly trading higher, buoyed by weaker-than-expected US economic data, which has improved sentiment around interest rate prospects.}
• _{The region continues to navigate a challenging environment shaped by global trade negotiations and evolving policy shifts.}
• _{Investor focus is now turning to June earnings announcements from major US companies such as Apple, Tesla, Nike, and UnitedHealth Group, which could influence global equity trends.}

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