The market moves in 3 structures: uptrend, downtrend and sideways. The whole market revolves around these three concepts – this is how the market can move.
-Up Trend: If the trend goes up the Euro is worth more. -Down Trend: If the trend goes down the Euro will lose in value. -Sideways Trend: Prices move in a narrow range.
Trends And Structure trading
In the video below I will go into more detail on Trends and Structure trading in combination with supply and demand trading.
We all know that following the trend in forex trading can be very important.
Of course we can also take countertrades, but the fact remains that countertrends are generally a lot more risky than the trades that go in the trend direction.
Especially for novice traders, the traders with less experience, I strongly recommend not to trade against the trend as long as you do not have enough experience.
Following Trends and structure in trading is also very important, especially if you want to go for a bigger profit.
I often see this happening in my community, then I get the question why did this trade go wrong?
Why did this trade hit my SL? And you often see that a counter trade has been taken with a much too high TP level.
Which is less likely to hit this TP with a counter trade.
With a counter trade if you still want to trade it, I always recommend that you keep a close eye on the trade and always pay attention to possible reversals in the direction of the trend.
Be sure to watch my video if you want to know more about this. I also have more videos on youtube with good explanations and tips.
And of course, don’t forget to like and subscribe to my channel. If you want to know more about my course or trading, feel free to contact me!
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The two major schools of thinking in financial markets are technical analysis and fundamental analysis. Technical analysis looks at a security’s price movement and uses this information to estimate the potential price movements. On the other hand, fundamental analysis looks at economic conditions, known as fundamentals. There is a major controversy about which kind of research is best for a trader. Is it easier to be a trader or a technical trader of fundamental importance?
Technical vs Fundamental Analysis:
Essentially, technological research is a study of price movements. Trades are made on the basis that past currency data will provide an indicator of how the potential output of the market will be accomplished. The fundamental principle is that traders conclude that all market knowledge available is found within currency prices and can be discovered by an in-depth study of movements. Thus, this study, and the data it generates, is used to make trading decisions.
With instruments and tools available to anyone from the experienced hedge fund manager to the inexperienced retail forex trader, technical analysis is simple and straightforward. Moreover, it is easier to interpret technological methods than simple indicators, whose interpretation typically takes a time of careful analysis.
Less of a science, and more of an abstract theory is fundamental research. It works by recognizing economic, social, and political events that affect the market and hypothesizing the way in which supply and demand, and therefore prices, would be affected. Factors analyzed may differ from macroeconomic metrics such as rates of economic growth or interest rates to statistics of unemployment or political upheaval.
The best advantage of the fundamental analysis report is the opportunity to grasp the triggers underlying market behavior. We can be secure in retaining a role by knowing market dynamics as long as the cause that caused the exchange persists. In the face of market uncertainty, a clear understanding of fundamental analysis also means that we do not lose our composure. Many who use fundamental studies to gauge market action are sure that they are on the road of forex trading’s greatest geniuses.
Do you want to become Success Forex Trader?
The Forex Scalper teaches you the best scalping trading strategy using supply and demand zones which is already traded and tested by thousands of TFS members and performs daily trades.
To become profitable from Beginner Trader and most successful Scalping trader inSupply and Demandjoin THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis and educations which boosts your trading skills make you Professional Forex Market Trader.
TheForexScalper recommends you join ICMARKET which is regulated and the most trusted broker. They provide very tight raw spread account with fast execution and having multiples deposit and withdrawal options.
Technical chart analysis is the multiple patterns the chart shows and all forms of price action. Also the overall analysis and the movement of the market over a certain time period. A soon you’ve learned to master the price action and how to determine the price action. You are ready to make a benefit of certain movements in the market.
Price Action is making the most of your trading decisions on a clean chart. Free of indicators and influences from the past. You could add the moving average for some extra help.
Since Price Action reflects al variables of a certain market over a certain period with the help of price indicators as Stochastic or MACD. You won’t need all the other indicators since they simply just distract you. Only the information you need to make a winning strategy is the raw movement of the market.
Price Action Analysis with TheForexScalpers
As told before, economic variables will move the market as well. Think of what I told you about fundamentals.
Movements like this are clearly recognizable. Just for the fun of it you should look up the chart of GBP/USD. Around the Brexit Referendum you will see a clear drop in the value of the GBP.
Price action analysis make use of the overall cure price data. That’s why this strategy could be used on every trade at the financial market. Before starting Price Action strategy make sure you start with a clean sheet. Remove all other distracting indicators in the past.
There is a big difference between charts with indicators and charts without. Example underneath will show you the difference. Take a look at both charts and tell me which one looks easier to analyze? Also charts with lots of indicators won’t give you more information. They only give you distracting information from the past that you really don’t want to know.
Price Action
Before we move on training your technical skills it’s important knowing the different time frames. Which time frame to use and which one not to use.
The Top Down analysis is an interpretation of the components of the ‘bigger picture’ and there of you go look at the smaller components. The most common time frames used for a forex analysis:
For a trader it is really important looking at the long term. Is there a visible trend or did the pair stay still land stabile? Support and resistance levels and other patterns are important by analyzing the long term. For example: You start looking at the monthly and weekly charts before the market opens at Sunday night.
