Predicting the forex markets can be a challenging, yet doable thing to master. The challenge lies in the requirement of constant market analysis and consistently applying your skills. Your perception of the market will help you predict trends, find the best possible entries, and exits. So it is absolutely clear that it is critical that you understand what you are seeing on your trading monitor.
When predicting the forex markets it is important to focus both on the most recent price development/candle designs, but also to never lose track of the bigger picture. There are many tools to stay aware of both and that help you be in sync with the market. Being in sync with the market means knowing the story from front to end (or most recent developments).
The story
So what is this story? I'll try to keep it as basic as possible, otherwise it will become to lengthy an article. The more detailed version of this is taught in the elite members area of Forex Watchers and from experience I know it will take some time before traders get a full grasp of it.
The story is based on reading all the candle design that has happened in the near past. How far you go back depends on the time frame you're trading, but you need to see several swings on one time frame higher. The emphasis really is on reading the market candle by candle. What did price do at which areas, asking yourself questions like "why did it react from there and not from there?" or "how come that reaction was so strong?". It really comes down to figuring out what happened and why. Trying to do this based purely on the technical read will often give you the upper hand in predicting the forex markets and even big news events. Just remember, everything happens for a reason.
Final words
Focusing just on certain candle patterns or just on the most recent developments will leave you exposed to things you don't expect to happen. Successful trading really is the sum of all your skills and education applied to the market. So you need to educate yourself as much as you can and then use that skill set and knowledge and apply it appropriately.
#UrbanForex - Be conscious of your trading!
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Editors’ Picks
EUR/USD holds around 1.0900 despite sentiment deteriorates
An unattractive dollar helped EUR/USD reach 1.0926, its highest in a week. The positive market’s mood that lead the way ever since the week started begun to ease. Wall Street trimmed early gains, ends the day mixed.
GBP/USD consolidating above 1.23 as Johnson remains in ICU
GBP/USD is trading above 1.23, yet off the highs as concerns over PM Johnson persist. He remains in intensive care. The safe-haven dollar is gaining some ground as stocks pare gains.
USD/JPY: US dollar sidelined vs. Japanese yen, trading near 109.00 figure
USD/JPY is trading above the 100/200 SMAs as the spot is trying to stabilize above the 107.00 handle amid slightly better market mood.
Editors’ Picks
EUR/USD holds around 1.0900 despite sentiment deteriorates
An unattractive dollar helped EUR/USD reach 1.0926, its highest in a week. The positive market’s mood that lead the way ever since the week started begun to ease. Wall Street trimmed early gains, ends the day mixed.
GBP/USD consolidating above 1.23 as Johnson remains in ICU
GBP/USD is trading above 1.23, yet off the highs as concerns over PM Johnson persist. He remains in intensive care. The safe-haven dollar is gaining some ground as stocks pare gains.
USD/JPY: US dollar sidelined vs. Japanese yen, trading near 109.00 figure
USD/JPY is trading above the 100/200 SMAs as the spot is trying to stabilize above the 107.00 handle amid slightly better market mood.
Coronavirus figures: Why traders should ignore Mondays and Tuesdays, focus on other stats
Figures on Mondays tend to show a drop in cases and deaths in various places in the world. such as Spain, and New York's figures all provide hope, contributing to a massive stock market rally on Monday, April 6.
Gold: Investors could be getting complacent and gold is great barometer
he USD 1640.00 level is a decent support level to watch as it has been used on six occasions and seem reliable. Even if it does break it will tell you a lot about the state of the market and the perception of the safe-haven asset.
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