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 stretches higher to test day highs at 1.1895
EUR/USD bounces up at 1.1840 to approach 1.1900 resistance area. The pair has bounced up from intra-day support at 1.1840 and is nearing resistance area in the vicinity of 1.1900. The euro appreciates against a weaker USD amid higher appetite for risk.
GBP/USD consolidates within pennant above 1.3350 as sterling awaits Brexit updates
GBP/USD is consolidating just above 1.3350 as sterling traders await further information on the state of Brexit talks. The pair has formed a short-term pennant, implying a breakout is likely, subject to fundamental confluence.
USD/JPY jumps to fresh weekly highs above 104.70 fueled by risk flows
USD/JPY is rising sharply in the early American session. Wall Street remains on track to open decisively higher. US Dollar Index turns positive on the day near 92.50.
Editors’ Picks
EUR/USD stretches higher to test day highs at 1.1895
EUR/USD bounces up at 1.1840 to approach 1.1900 resistance area. The pair has bounced up from intra-day support at 1.1840 and is nearing resistance area in the vicinity of 1.1900. The euro appreciates against a weaker USD amid higher appetite for risk.
GBP/USD consolidates within pennant above 1.3350 as sterling awaits Brexit updates
GBP/USD is consolidating just above 1.3350 as sterling traders await further information on the state of Brexit talks. The pair has formed a short-term pennant, implying a breakout is likely, subject to fundamental confluence.
USD/JPY jumps to fresh weekly highs above 104.70 fueled by risk flows
USD/JPY is rising sharply in the early American session. Wall Street remains on track to open decisively higher. US Dollar Index turns positive on the day near 92.50.
Bitcoin price majestically rockets past $18,000 as $20,000 beckons
Bitcoin rally is in full swing as investors anticipate a final leg up to $20,000. The flagship cryptocurrency has in the last couple of weeks broken key barriers to top $18,000 on Wednesday towards the end of the Asian session.
Gold consolidates above $1,800, hangs near four-month lows
Gold holds just above the $1,800 threshold while taking rounds close to four-month lows. The hopes of the US stimulus and recovery from the coronavirus (COVID-19) keep the gold bears hopeful. DJI30, S&P 500 closed at the record top, DXY eased.
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