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 stays below 1.0500 after German and EU PMI data
EUR/USD stays on the back foot and trades below 1.0500 in the European session on Friday after the data from Germany and the Eurozone showed that the economic activity in the private sector expanded at a moderate pace in February. Investors await US PMIs.
GBP/USD retreats to 1.2650 area after mixed UK data
GBP/USD struggles to gather bullish momentum and stays near 1.2650 in the European session on Friday. Earlier in the day, the upbeat UK Retail Sales helped Pound Sterling find demand but the mixed PMI reports limited the pair's upside. Focus shifts to key US data releases.
USD/JPY stalls the bounce below 150.50 after BoJ Ueda's speech
USD/JPY is stalling the rebound below 150.50 in the Asian session on Friday. Japan's core CPI rose to a 19-month high in January, reaffirming bets that the BoJ will continue to raise interest rates, underpin the Japanese Yen alongside BoJ Ueda's hawkish comments.
Editors’ Picks
EUR/USD stays below 1.0500 after German and EU PMI data
EUR/USD stays on the back foot and trades below 1.0500 in the European session on Friday after the data from Germany and the Eurozone showed that the economic activity in the private sector expanded at a moderate pace in February. Investors await US PMIs.
GBP/USD retreats to 1.2650 area after mixed UK data
GBP/USD struggles to gather bullish momentum and stays near 1.2650 in the European session on Friday. Earlier in the day, the upbeat UK Retail Sales helped Pound Sterling find demand but the mixed PMI reports limited the pair's upside. Focus shifts to key US data releases.
Gold drops over 1% from Thursday’s all-time high
Gold dives lower and slips below $2,925 on Friday. The Trump administration puts lifting trade bans against Russia on the table. Traders are mulling the upcoming US preliminary S&P PMI data for February.
US S&P Global PMIs set to show healthy services and manufacturing sector in February
The S&P Global preliminary PMIs for February are likely to show little variation from the January final readings. The Federal Reserve may resume its easing cycle in July. EUR/USD’s near-term outlook remains negative ahead of PMIs.
Money market outlook 2025: Trends and dynamics in the Eurozone, US, and UK
We delve into the world of money market funds. Distinct dynamics are at play in the US, eurozone, and UK. In the US, repo rates are more attractive, and bills are expected to appreciate. It's also worth noting that the Fed might cut rates more than anticipated, similar to the UK. In the eurozone, unsecured rates remain elevated.
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