Generally, based on two strategies above, the trader will be divided into a technical trader and a fundamental trader. However, in practice, it is no trader can actually apply pure one strategy. The fact is, both strategies complement each other, so that when both are combined, the path to becoming a successful forex trader will open wider.
All traders will definitely want to get a way to survive in the forex and produce consistent profits. In this article, we will provide an easy way to identify the condition of the market, based on a combination of trading strategies, technical and fundamental.
For you who are looking for market forex trends, try to observe the state of the current market. Whether the market is a reversal, saturated, or is experiencing a reversal of the trend? To get the answers, trader must be able to seek and find the direction of price movement. Price movement chart or action chart price is the solution. If the price moves into a higher trend (graph moving upwards), then it is called Up Trend, conversely, if the price moves into the lower trend (graph moving downhill), called Down Trend. The graph below is an example of a Trend Up and Down Trend:
By observing the trends mentioned above, the trader can easily identify bias in market sentiment. Wherein, when the down-trend, bias will decrease, and vice versa when the up-trend, bias will increase.
In this situation, trader is not enough to just sell or buy and hope to be on the right track only. However, traders should be able to make purchases with a minimum price when up-trend, and sell at a price as much as possible in the event of down-trend. In other words, when prices had the opposite with your transaction, immediately get out of the transaction.
Forex trader also can use support and resistance to identify price movements. More importantly, it also can reverse the trend of the market at that moment. As in the above chart shows the price is initially being down-trend can be reversed into an up-trend.
Thus, risk management should still be used even though the symptoms can be seen and predictable market clearly.
To be able to combine technical and fundamental, traders could use the economic calendar to see whether the opportunity to buy or sell. Generally, price of the event news will provide more opportunities, so expect traders can take these opportunities to gain by entering the market at the right time. For more details, can be seen from the following picture:
In conclusion, in order to obtain consistent profits, traders should be able to look at the overall market. As expressed by Jamie Saettele (Dailyfx): "to be able to take advantage, then the trader should be able to see the reaction of the price of a story that happened, and was able to react quickly when news is being released".
Happy weekend :)
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