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!
Any opinions, news, research, analyses, prices, or other information contained on this website is provided as general market commentary, and does not constitute investment advice. Urbanforex will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.<7p>
Editors’ Picks
EUR/USD nears 1.1100 ahead of the close
The EUR/USD pair is at daily lows after US and Chinese authorities confirmed phase one on a trade deal agreed. Some tariffs will be rolled back as China agreed on “massive purchases” of US goods, according to President Trump.
GBP/USD extends corrective decline to 1.3330 region
The GBP/USD pair continues shedding part of its post-UK election’s gains, although at levels last seen several months ago. Hopes that PM Johnson will pass his Brexit deal through Parliament will keep the Sterling on the winning side.
USD/JPY: Bulls gearing up for a move beyond 110.00 handle
USD/JPY added to the overnight strong gains amid US-China trade optimism. The UK election results further boosted the global risk sentiment on Friday. Investors now look forward to the US retail sales data for a fresh impetus.
Editors’ Picks
EUR/USD nears 1.1100 ahead of the close
The EUR/USD pair is at daily lows after US and Chinese authorities confirmed phase one on a trade deal agreed. Some tariffs will be rolled back as China agreed on “massive purchases” of US goods, according to President Trump.
GBP/USD extends corrective decline to 1.3330 region
The GBP/USD pair continues shedding part of its post-UK election’s gains, although at levels last seen several months ago. Hopes that PM Johnson will pass his Brexit deal through Parliament will keep the Sterling on the winning side.
USD/JPY: Bulls gearing up for a move beyond 110.00 handle
USD/JPY added to the overnight strong gains amid US-China trade optimism. The UK election results further boosted the global risk sentiment on Friday. Investors now look forward to the US retail sales data for a fresh impetus.
Financial Big Brother is coming, but Bitcoin will remain
Central banks move quickly looking to oversight all payments. Greece could impose sanctions if digital means are not used in at least 30% of payments. Once inside the crypto ecosystem, governments have little capacity for financial censorship.
Gold: Steadily climbs to session tops, upside seems limited
Gold extended the overnight rejection slide from 100-day SMA resistance and witnessed some follow-through selling during the Asian session on Friday.
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