It is believed that the trend is the best friend of good traders as long as they feel it. But, when you don’t have the ability to “feel” the market, there is one strategy that allows you to pick tops and bottoms with no indicator support. Under normal circumstances, this would be complete suicide, but not if you handle the seven-day extension fade strategy correctly.

The seven-day extension fade strategy is founded on the principle that a currency pairs move is due for a retracement after seven consecutive days of strength. The number is not randomly chosen and is the product of unaccountable daily observations. As a rule, the strong trend may start at the beginning of the week and could continue for several days, but rarely for more than seven days. In trading days, that is more than a week of unbroken unidirectional movement.

However, this trend rarely lasts for more than seven days and that is because it is in the human genes that people think in groups of seven. Even phone numbers have seven digits. Therefore, after these seven days are gone, price needs to pause. There are three possibilities inside the seven-day extension strategy. You can use the seventh day method for the highest probability trades. You can take the chance on the eighth day miracle, which rarely occurs. Or you can bet on a stall of the movement in the fifth or sixth day, which normally coincides with a key technical level. A trend is made of a series of candles, as Forex traders call them. All candles in an uptrend and all candles in a downtrend must be positive and respectively negative. Any interruptions signify that there is a new trend.