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The system responds only to immediate price action. PROBLEM: FALSE "STRONG TREND" INDICATION. There are two problems of how a Forex system recognizes the trend. A well designed system starts with trend analysis to stay away from potentially losing trades. Such a system can be profitable for several months and you would be happy with it. It is not a problem as long as the market is trending and the system is making more money than it loses. They often make money in a trending market, but loose money in a choppy market. They are tuned up to work in a specific market condition. Let me explain the basic principle how most Forex systems work.
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