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 recovers toward 0.9700 as dollar loses strength
EUR/USD has gathered recovery momentum in the early American session and rose toward 0.9700. The US Dollar Index continues to retrace its daily rally after disappointing Chicago Fed National Activity Index reading, helping EUR/USD push higher.
GBP/USD climbs into positive territory near 1.0900
GBP/USD has extended its rebound and turned positive on the day near 1.0900. Speculations about the BoE preparing to deliver a statement on the pound's depreciation and the modest selling pressure surrounding the dollar fueled the pair's upside in the early American session.
USD/JPY marches towards 144.00 on firmer yields, risk-aversion ahead of Fed Chair Powell’s speech
USD/JPY renews intraday high around 143.60 as Tokyo opens for Monday, extending Friday’s recovery moves. In doing so, the yen pair also reverses the previous day’s pullback from the 24-year high, triggered by Japan’s intervention to defend the national currency.
Editors’ Picks
EUR/USD recovers toward 0.9700 as dollar loses strength
EUR/USD has gathered recovery momentum in the early American session and rose toward 0.9700. The US Dollar Index continues to retrace its daily rally after disappointing Chicago Fed National Activity Index reading, helping EUR/USD push higher.
GBP/USD climbs into positive territory near 1.0900
GBP/USD has extended its rebound and turned positive on the day near 1.0900. Speculations about the BoE preparing to deliver a statement on the pound's depreciation and the modest selling pressure surrounding the dollar fueled the pair's upside in the early American session.
Gold fails to hold above $1,640 as US yields push higher Premium
Following the selloff witnessed in the early Asian session, gold turned positive on the day near $1,650 but erased its daily gains. The benchmark 10-year US Treasury bond yield is up more than 2% on a daily basis, not allowing XAU/USD to stretch higher.
Cardano price could trap impatient investors before triggering an explosive move to $0.505
Cardano price shows a consolidation below a stable support level and has yet to reveal a directional bias. The ongoing range tightening will likely resolve as the US markets head to a fresh start this week.
Three stocks that will be in the news this week: Amazon, Nike, Micron Technology
The S&P 500 index lost 4.1% last week and left traders melancholy with another week to go in this dreadful September. The S&P 500 index is down 6.6% so far in the month that is already known for poor performance, and most seem to think the pain will continue.
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