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 bounces from fresh lows, risk skewed to the downside
EUR/USD trades in the 1.1670 price zone, as demand for the greenback eased during US trading hours, following dismal US employment-related data.
GBP/USD holds on to gains around 1.2750
GBP/USD retains early gains after UK Chancellor Rishi Sunak said the government is developing plans to protect jobs and the economy over the winter, proving n further details. BOE Bailey’s speech in focus.
USD/JPY: The pair is moving into a very congested price area
It's fair to say that USD/JPY has not been the most interesting currency pair over the last couple of months. The pair sprung into life when the Yen strength kicked in on 14th September.
Editors’ Picks
EUR/USD bounces from fresh lows, risk skewed to the downside
EUR/USD trades in the 1.1670 price zone, as demand for the greenback eased during US trading hours, following dismal US employment-related data.
GBP/USD holds on to gains around 1.2750
GBP/USD retains early gains after UK Chancellor Rishi Sunak said the government is developing plans to protect jobs and the economy over the winter, proving n further details. BOE Bailey’s speech in focus.
USD/JPY: The pair is moving into a very congested price area
It's fair to say that USD/JPY has not been the most interesting currency pair over the last couple of months. The pair sprung into life when the Yen strength kicked in on 14th September.
BTC/USD is on the verge of a massive breakout towards $10,000 or $8,000
Bitcoin has already lost a significant portion of its dominance against other altcoins. After trading sideways for such a long time, many coins are taking advantage of the situation to create massive rallies.
XAU/USD catches a bid at $1850 but the retracement may not be over
Gold has been moving in a downward trajectory since the greenback strength kicked in on 1st September. Since then, the greenback has broken out of consolidation zones in EUR/USD and most of the other majors.
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