Understanding the Forex market

Understanding the Forex market

Understanding the Forex market

In this article, we will talk about how to learn to understand the Forex market. If you understand the General concept of a market trend, you can eventually learn to" feel " it faster. After all, most novice traders are scratching their heads, who do not have an understanding of the Forex market, in which direction it is best to open an order. This is exactly the skill that this article will focus on.

Why is it mandatory to read this article? Yes, at least because it will significantly increase the effectiveness of trading. Do you agree that this is a strong argument? And it is worth it to take 5-10 minutes to read this method.

After this way of understanding the market was discovered, I found myself thinking that a lot of time had been wasted before. Although, it was possible to learn more effectively. Only now, when there is some experience in understanding the Forex market, it becomes obvious that it is not necessary to spend years to learn how to make money on Forex. Everything is achieved in much less time.

I will try to describe my method, which allowed me to quickly come to an understanding of the Forex market and not spend months and years on it. If I had started learning to understand the Forex market right away, instead of wasting a lot of time, then the results would have been much earlier.

Before you start telling me how to understand the Forex market, I will give three tips to all beginners in order to save them time:

master the basics of technical analysis (this will be some base);
the Forex chart should be clean, you should only observe bars or Japanese candlesticks;
upload a lot of quote history to the trading terminal to start viewing the chart.

What should I do to better understand the Forex market?

Let's assume that we have completed all three tips that will become a Foundation for understanding the Forex market, what's next?

Open any currency pair, start with the M15 or H1 timeframe. Then slowly move the chart to the right. So slowly that candle after candle disappears.

how to understand the Forex market

Timeframe M15, the currency pair GBP/JPY.

This procedure can take quite a long time. How much? Think for yourself, so you need to view the history for 12 months.

When performing this operation (gradual viewing of the chart) on a single timeframe, you need to mentally start opening trades, as if anticipating where the price may move in the future. We remind you that you need to do this manipulation exclusively on a pristine chart. This will allow the Forex trader to get used to the movement of the market, a certain feature will come, and a certain algorithm will be created in the mind over time. In other words, a person will predict not only the beginning, but also the end of the movement. Understanding the Forex market without such manipulations will not come quickly.

Then, for the same currency pair, you need to switch to a different time period, let it be M5. Scalpers like to use it in their analysis. And it doesn't matter what kind of financial instrument it will be.

The main thing to remember is to perform such an operation for the longest possible period with timeframes from M1 to H4, at least, and then understanding the Forex market will not take long. In the process, you will probably notice that the same pattern will be observed on each timeframe: the same movements...

how to learn to understand the Forex market

H4 timeframe, USD / CAD currency pair.

Next, you need to slightly complicate the process, understanding the Forex roar without this will be incomplete. You need to view the history of the same pair on three timeframes at once, so that in your head the three parts merge into one specific picture. Let us remind you that understanding the Forex roar without this action will not be complete. Only the ability to comprehensively analyze a pair in different time periods will lead to great success.

It is clear that understanding the Forex market is not easy. And this will definitely require a decent amount of free time. But believe me, it's worth it. At the same time, if you are considering yourself as a trader in the future, after this procedure, you will immediately understand what it is Or it is better to do something else. After all, everyone can't be professional traders, and for some, understanding the Forex market is not an interesting process. But at the initial stage, the trader will need to do a lot of analysis, be careful and work hard enough.

By the way, such operations should be performed on a regular basis, not once. Over time, when viewing charts, you will need to connect trading tools that allow you to conduct high-quality analysis. This means building support/resistance lines, Forex channels, and others. Such actions need to be performed on one timeframe and on three, since only a comprehensive analysis will give excellent results in the end.

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