Forex price movement, your challenge is to work out where they may go next and 95% of traders fail to get this right and lose and this is because they make assumptions which are wrong. Here we will look at the right way to analyse forex price movement for profit.
Before we show you how to make profit let's look at some myths most traders believe.
1. There is a scientific law of movement
No there isn't and this theory is just plain dumb.
Gann, Elliot and Fibonacci are touted as knowing the scientific law yet there theories don't work all the time and for a law to be scientific that's what they have to do. Common sense tells you - that if there was a law of forex price movement there would be no market, as we would all know the price before it occurred.
2. You can Predict Currency Prices
This really goes with point 1 - but many traders who don't believe in science, still believe they can pick tops and bottoms, or need to try to win. Prediction is simply guessing or hoping and these traders see there predictions end up as accurate as their horoscope.
3. Short term Trading Works
No it doesn't, as all volatility is random in time frames of less than a day.
Ever seen a day trader or forex scalper win? Exactly. Try as hard as you like you won't win long term.
So how do prices move and how can you make money?
The first point to remember is forex price movement may not be scientific but you have high odds scenarios where the chances of you winning are in your favour. You won't win every time but if you trade these high odds trades, cut your losses and run your profits, you will win over the long term.
The Key to Forex Price Movement
The reason you can do this is forex prices are determined by humans and humans are subject to the emotions of greed and fear and they constantly push prices to far in either direction. If you look at a forex chart you will see these price spikes never last long and they can be traded for profit.
The Past Repeats
Forex markets trend long term and have price spikes along the way and you can either buy the trend, or hIt high odds turning points. It doesn't matter which you do, so long as you trade high odds set ups and you can master these with a little practice.
Trade the Odds and Win
Forex trading is not about perfect market timing, perfection in picking tops and bottoms or not losing trades - that's not possible. What is possible, with a simple robust forex trading strategy is - to trade with the odds on your side, win more than you lose and make huge profits over the long term.
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