Get started

Forex-education

How to Follow the Market's RhythmMost traders overtrade, for one reason or another. Overtrading is perhaps one of the quickest ways to decimate your account and especially as a retail trader with limited risk capital, the best thing is to only trade when the market is active and offering A+ trades. Efficiency is possible by working smarter, not harder. The question becomes: how can you identify those instances when it's worth pulling up a chair? When will the market be ripe for participation and when is it better to sit on your hands? The Market's Rhythm Some weeks the market is very active, and some weeks (like this week in particular) the market is simply chopping around. There is a rhythm to the market, which is important to understand. All traders probably know by now the usual behavioural traits of the three main money centers in Foreign Exchange: London is usually the trend-setter; New York is the deepest liquidity pool and frequently challenges the London move; Asia is usually the consolidation session. But sometimes the market is awake and sometimes it seems like it's sleeping. How can you logically forecast when to sit in front of your screens and when to something else with your time? Let's take this week as an example. This week we've had 3 relatively big pieces of data thus far: UK employment data UK CPI US CPI You would think that the markets would be pushed around by such items (which usually generate viable NewsFlow Trades) but instead all has gone silent this week. The markets are evidently waiting for something. Bill Lipschutz, founder of Hathersage Capital and Market Wizard, put it this way: "What is important is to assess what the market is focusing on at the given moment". By paying attention to any bank sheet or market wrap, it becomes immediately evident what the drivers are for the day or week ahead. This goes one step further than just watching an economic calendar because amongst all the pieces of data, you know which ones will be the main focal points. In particular, this week the FOMC rates decision and the ECB rates decision take center stage. The markets frequently remain rangebound ahead of such influential decisions and for good reason: if something unexpected comes out of either meeting, it could potentially force a decisive shuffling of positions - meaning large moves. This would make any pre-event risk taking fruitless. Mindful Inactivity The key to remaining in touch with the market's rhythm resides in a few important practices: check your macro calendar at the beginning of each day (as a reminder); read up on a few bank sheets over the weekend in order to get a feeling for what will be in focus during the week ahead; read session wraps in order to stay in touch with the day-to-day happenings (ForexLive produces free market wraps for example); take into consideration bank holidays, regular holiday times (August/December). Mindful inactivity means that you’re acting like an eagle and not like a pigeon. Eagles do not waste energy. They wait for thermal columns and glide seamlessly upwards, carried by the hot rising wind. Thermals appear during morning or early afternoon hours after the sun rises and warms the earth. When a surface grows hot enough, a thermal column rises into the atmosphere. So that's when it's more likely to see eagles flying. They don't appear out of thin air...you know that they are creatures of habit and are attracted by a certain dynamic. Mindful traders are tuned into the rhythm of the market and listen, read and prepare. If a trend is starting on the back of a meaningful story/development/news item, a significant price change may follow. Hence, waiting for the market to be inspired by something enhances the risk-reward ratio of your trades, and can also positively impact your win rate. Good Luck!
Education
by Sam_Eder
5
USDCAD - An easy 30 pip trade - Keeps holding trading channel An alternative bat has been formed and all indicators point out to a small bull run. Entry price: Any market price up to 1.28937 #TP1 : 1.29500 #TP2 : 1.30130 #TP3 : 1.31026 Stoploss: 1.28598 I'm taking profits at TP1. I'm probably going to dollar cost average this trade from TP1 to TP2 The take profits are just calculations. You never go broke from taking profits, you do get broke from chasing long pips. If you have any questions, please feel free to contact me. Follow me on Tradingview for more daily ideas.
Long
by Orgest
EURUSD range-in-range effectGood morning, today i checked out the four-hour-chart and saw that range-in-range effect which we can see many time while the market is running sideways. This effect always has a big range, a small range in between that big range and a neutral area. Those three levels are mostly decisive for the next movement. What does it mean in this case? The market is currently in that neutral area. At this level i am not doing any trades since it is completely open whether it goes long or short. Thats why i am just spectating the market and wait for the moment when the market is leaving this area. If it leaves the area long i will focus at long trades only if it leaves short i will focus on short trades only of course. Whats the sense of it? The neutral area is mostly in the middle of the big and the small range. We know that we have a Ping-Pong-Game inside a range. So if the market is leaving this neutral area long/short it will mostly test the upper or lower range line. For example : if the market leaves the neutral area to the long side I could plan long trades with a target the range line from the small range. The small range lines will decide if the market entries the upper range or the lower range area. Thats why you can see that small range also as a "neutral area" regarding the big range if you only want to focus on trade with big range targets. Summary : i will wait for a break out of the neutral area to find possible long/short entries.
Education
by StefanKassing
2
trade 6 EUR AUD SHORT Here is my trade for Eur Aud short I saw this area where a lot of seller have been pushing buyers down quite a bit first signal as a higher high was never made second double top and the market quickly reversed showing sellers are in control third the market hit my trendline and reacted quite quickly to it with price action therefore my analysis is if we continue to break further buy areas then a tp of the following on the chart which has been illustrated will have a high probability of hitting Kris www.mymentortcv.com
by mymentortv
EUR USD Daily Analysis We are going down for the time being Hi everyone Eur usd from analysis on the break of lower low and pitchfork lines has shown me we are going down so my if then statement is as such: If this market continues to take out the previous buyers going down then I will set my tp to either the first tp or second depending on how deep we go in the market: I am looking for the euro usd to keep going back up long term trend is bullish but this is a little pit stop to get on that way up your friend Kris any comments or ideas on pairs you want me to look at let me know www.mymentortv.com
Short
by mymentortv
USDJPY > Simple candlestick signals easy to recognizeEducation > Basic Candlestick Signals Chart > USDJPY > Non-Farm Payroll News Release > Friday, Oct. 6, 2017 - 8:30 A.M. Analysis in chart 1. Large body w/small wicks indicate strength 2. Larger the body w/smaller wicks indicate greater strength 3. Long wick w/body at opposite end of candle indicates shift in trend momentum 4. Wicks at both sides w/smaller body in middle indicates indecisiveness and both sides have equal strength 5. Larger wicks w/smaller body in middle indicates increase of indecisiveness * Personal analysis only. Please use your own rules and strategies prior to entering market. ** Forex trading involves HIGH RISK. Before entering a trade, carefully consider your objectives, financial resources and level of experience.
Education
by ALSM59
1
Trading News ReleasesFor those who consider U.S. Major News Releases in trading, here are projections for the upcoming week's session: ** Projections ONLY ** GDP Growth Rate : From 2.6 to 2.0 Employment Rate : From 4.3 to 4.4 Inflation Rate : From 1.7 to 2.0 Interest Rate : From 1.25 to 1.25 Government Debt to GDP : From 106.10 to 106 Goods Trade Balance : From 43.6bn to 45.0bn / 46.6bn Nonfarm Payrolls : From 209 to 165 Nonfarm Payrolls Private : From 205 to 192 ADP Employment Change : From 178 to 186 Personal Income : From 0.00 to 0.29 Consumer Confidence : From 97.6 to 95.0 Personal Spending : From 0.10 to 0.30 Personal Income : From 0.00 to 0.29 Building Permits : From 1230 to 1150 Housting Starts : From 1155 to 1190 New Home Sales : From 571 to 550 Pending Home Sales : From 0.50 to neg. 1.9 Existing Home Sales : From 5440 to 5500 Retail Sales MoM : From 0.60 to 0.30 NY Empire State Manufacturing Index : From 25.2 to 9 Ism New York Index : From 62.80 to 57.43 Dallas Fed Manufacturing Index : From 16.80 to 14.3 Chicago Fed National Activity Index : From neg. 0.01 to +0.09 Philadelphia Fed Mfg. Index : From 18.90 to 12 Richmond Fed Mfg. Index : From 14.00 to 6 Full list can be found via provided url link: tradingeconomics.com * PERSONAL REFERENCE ONLY. Please use your own rules and strategies prior to entering market. ** Forex trading involves HIGH RISK. Before entering a trade, carefully consider your objectives, financial resources and level of experience.
NASDAQ:CECO
by ALSM59