Things that works for a forex trader

Its been quite week so far, understandably because market needs a break from strong volatile days and also there is big release coming this Friday.

But Idea of this article is not that what is coming and lying ahead, idea is to always remain within yourself and Picking up the markets that work for you.

As a Forex Trader, One should not always look for trading opportunities , because as stock market there are not too many choppy sessions in Currencies. There are days of extreme volitality and there are days of average movement, but we have to be conscious enough to take the opportunity when it arrives.

So, what does that mean when opportunity arrives, with that I mean when market moves volatile, one does not get the opportunity, then one should lined up the charts that breaks from earlier accumulation zone.

For me, its always been neutral days that comes up with the opportunity and recent movement in Gold , is one prime example of such opportunity.

As market was waiting to break and there were not too many strong sellers involved even price was bearish prior to breakout but when market does break that level, there was conscious effort of holding the price above that breakout and that is with a neutral buying day.

Market also built a minor development area and keep rising from that level, So where does the opportunities lies in this market, and why we should keep waiting for market to test that area again in next couple of days.

Market has to test the area to check whether that area hold any supply and if market has no supply to hold the price here, then probably it will keep rising as it happened in this case.

Importanace of Reading Overall Price action

Hi,

I have again turned up with some good learning of Currency trading process. This time I would not only talk about how important it is to understand the price action but also on relative Importance of Particular Candlesticks Patterns.

Price Action techniques have changed and will keep improving with time. But "context" will remain the same and with context I mean the way "Institutions" enter the market and sell and buy with predetermined approach.

So Candlesticks price action usually works the other way because last session close on break of high could possibly lead to strong selling in next session .

But this is not importance because ranges are often followed by trend specially If background is pretty clear and By background I means strong money dominating before could be sign of exhaustion of trend when any Pullback entry is offered.

It entirely depends on the consciousness and approach and when we have such approach that we can identify where strong money is trying to push the price, the become lot easier but it does not mean that we should not give respect to market if it turns and always look to get out early if things went wrong immediately.

Lets taken an example of Possible Correctional bottom

Traders have setup their mind after strong trends possibly one like that an pullback entry is waiting after small ranges but when these ranges breakouts faded out with strong candle above the range then we should look for New lows and effort after new lows.

There are no Sticky rules for selling and buying and that is what happened in this chart.

We have seen Price always jumped of from New highs and new lows and that can happened to this chart as well as prior trend is quite strong.

But when enter with logic then there are better chances that we succeed rather than blindly enter on breakout in strong trends which does not make logic.

Looking forward for some more examples

Trade Idea Retracement Might be completed in Aud/jpy

Aud/jpy Daily and Hourly charts updated

Hi, Traders

Trading activity is very volatile and it is very difficult in volatile conditions to get a proper entry as there is risk of hitting of stops both ways

There is greater risk of whispaw when there is lot going throughout the world and recent activity in Japanese crosses is prime example of market is in two minds.

Let's see the daily chart of Aud/jpy


This chart explains a accumulation after strong fall and it is also strong weekly support and when we have such large sideways movement in strong trend then we might think twice before going long again

While you still look for pullback and think of taking "Retracement Signal",then probably you look to rely on strong demand and supply areas on larger time-frames

Strategy and Market consciousness are two factors that pick the differences between good and bad trader but even simple things can help you pick strong entries which have logic rather than looking to enter every retracement as there is no chance we can go long or short with few candlesticks behavior untill we sort over trades with other methods.

usd/jpy Levels daily before FOMC Statement

Hi Traders,
Its quite a while since I have updated the blog but there were limited opportunities available after the release of NFP statement, Here is the usd/jpy chart ahead of FOMC release of the February Metting minutes and I am closely watching the levels and would like to trade any rejection or breach of high as volitality is very low at extremes and that is a big sign of breakout.

Update gbp/usd l Downtrend was on the cards

I will update the text later