6 Points to predict forex trends:
In this article, we will explain the clues that will help to predict the forex trends. It is main to find the trends early before they happen. These 6 points should be significant for you.
Points to predict forex trends:
The weekly structure:
Look at the weekly structure every single Sunday “trend lines, zones, support and resistance”.If you are a beginner trader, you need to create _every Sunday_ a list of your favourite Forex currency pairs (if you trade Forex) and then make the trend lines and identify the structure. How to do that? It is simple! Go to start, choose the daily chart, and create the structure to check your highest or lowest points. Then look for areas from which the price is going to break out. After doing this on a daily chart, you can break it down to a four-hour chart. So you can place or resistance.
Review previous monthly price action:
The second point to predict the forex trends is to review previous monthly price action” highs, lows, volatility”. Look at the last month’s highest and lowest points. You can do that on the daily chart. When you look at the monthly chart, one candle is one month which is not good if you are a day trader or swing trader or scalper.
Set realistic goals:
The third point to predict the forex trends is to set realistic goals.
An example:
How many trades or days per week do you want to trade? If you are a new trader, it’s not good to market from Monday to Friday because Mondays and Fridays are the riskiest days of the week. On Monday, the Forex market opens, and there’s a lot of crazy volatility going on. While on Fridays, there is also a lot of fundamentals released. The best trading days of the week are Tuesdays, Wednesdays, and Thursdays, where you can get the best results.
Determine individual currency power for any relevant pairs:
The fourth point to predict the forex trends is determining individual currency strength for any relevant pairs.
An example:
If the one currency is very bearish, look for sale opportunities on that day.
If the one currency is very bullish, look for buying opportunities on that day.
Creating a daily trading plan of action:
The fifth point is creating a daily trading plan of action. Create your daily trading plan, and make a list of the currency pairs you will focus on and analyze because you are planning to trade them. Then make sure you have trend line support and resistance and then go to an economic calendar and what news will be released that day for which currency pairs. So you can trade according to the direction of the trends and feeds.
Important news and events :
The sixth and last point to predict forex trends in this article is to create a list of important news and events each week. It’s like using an economic calendar.
If you stick to these points, you will master and predict forex trends early.
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