Tips on How to Read the Trend of Forex Price Movement
Learning forex is needed for you who want to plunge into forex trading business. Because the business is full of risks despite promising an infinite income. Here we provide tips on how to read trend of forex price movement. Why do we call it a tendency? Because the movement of forex prices are very dynamic. Although there is a term history repeat itself, it does not necessarily have the exact same events and effects.
Find the Right Trading Time
In the forex market there is a bargain between the buyer (buyer) and seller (seller) is described with a candlestick pattern. Then make sure your market entry (do order BUY / SELL) at the right time.
Of course, we advise you to do order when market clock has opened (haha .. if still close it can not do order). Our point is at a time of high liquidity so that the battle between the buyer and seller is clear who the winner is. There are several windows of forex market time in this world. Namely Asian markets (including Australia and New Zealand), European markets and American markets. Each time window has its own character. Please study.
Define Your Trading Style
There are several trading styles that we know are Swing Trader, Day Trader and Scalp trader. If your style is Swing Trader then you are only trading (position entry) once or twice a month. You can use the graph with monthly TF (MN) and weekly (W1). While the confirmation entry is in the daily TF (D1) or 4 hours (H4).
Day Trader’s style usually performs entry positions once a week or once a day, so Day Trader can use graph with weekly TF (W1) and daily (D1). While the confirmation entry is in TF 4 hours (H4) or 1 hour (H1).
Whereas if your trading style is Scalp Trader then you do a lot of position entry in one day. Usually use the graph with TF 1 hour (H1) and confirmation entry in TF 15 minutes (M15) or 5 minutes (M5).
We will give examples of tips on how to read the trend of forex price movements in the next article.