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 retreats further below 1.0900 amid risk aversion
EUR/USD has accelerated its decline below 1.0900 after having spent the first half of the day fluctuating in a tight range near that level. The risk-averse market environment, as reflected by falling US stocks, helps the US Dollar gather strength and weighs on the pair in the American session.
GBP/USD loses the 1.2400 threshold on US Dollar demand
GBP/USD came under bearish pressure and declined towards 1.2360 in the second half of the day on Monday. The cautious market mood ahead of this week's high-impact events seems to be supporting the US Dollar and capping the pair's upside.
USD/JPY: Bulls await sustained move beyond 200-period SMA on H4
The USD/JPY pair attracts some dip-buying near the 129.20 region on Monday and climbs to a fresh daily top heading into the North American session. Spot prices, for now, seem to have stabilized above the 130.00 psychological mark, though remain well within a familiar trading range held over the past one-and-half week or so.
Editors’ Picks
EUR/USD retreats further below 1.0900 amid risk aversion
EUR/USD has accelerated its decline below 1.0900 after having spent the first half of the day fluctuating in a tight range near that level. The risk-averse market environment, as reflected by falling US stocks, helps the US Dollar gather strength and weighs on the pair in the American session.
GBP/USD loses the 1.2400 threshold on US Dollar demand
GBP/USD came under bearish pressure and declined towards 1.2360 in the second half of the day on Monday. The cautious market mood ahead of this week's high-impact events seems to be supporting the US Dollar and capping the pair's upside.
Gold: Investors defend the $1,900 threshold ahead of critical first-tier events Premium
Spot gold trades uneventfully for a second consecutive day, hovering around $1,923 a troy ounce. The Greenback started the week with a positive tone, although gains were modest ahead of the multiple first-tier events scheduled for later this week.
Here’s why Ethereum-killer Cardano whales are shedding their ADA holdings
Cardano network’s large wallet investors have started selling or redistributing their holdings. ADA price has broken out of the multi-month downtrend and the next bullish target represents a 10% climb.
Lucid Group adds 12% on Monday to Friday's 43% gain
Lucid Group (LCID) has reversed course in Monday's premarket. Shares of LCID first shed more than 6% early in Monday's premarket, before rising more than 12% later in the session.
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