Many traders think they can forecast foreign exchange prices in advance. If you believe this, then you need the foreign exchange education attached to this article. Let us see why you cannot - but why it does not prevent you from enjoying the success of currency trading.
If you think about it carefully - it's obvious why you can't predict the price in advance, because if you do this, you are hiring or guessing, which will not help your life or foreign exchange transactions. You will find that your prediction will not be more accurate than your constellation.
There is a school of thought that because human nature is constant, then prices must shift to scientific theories - but they will not. From an absolute perspective, human nature is unpredictable. Of course, if there is a scientific theory of market movement, we will know the price in advance and there will be no market. The market is actually because human nature is unpredictable.
So, if you can't predict the price in advance, how will you win? The answer is to look for high single figures and then use price incentives to confirm each trade signal.
For example, suppose you see that the price on the Forex chart has entered a strong support level, and that you want to execute trading signals - instead of directly entering the market, you need to wait for the test to come back, another way.
Basically, you are looking for price momentum to reverse and get rid of support levels and then execute your trading signals. Now, you will not make the right decision at the bottom of the move, but in any case you can't predict. It's not a big deal, but you will probably be with you and this trend will continue.
How do you know that the momentum has changed?
You need to be familiar with the momentum oscillator. We don't have time to discuss them in detail in this article (just look at our other articles), but by using them in your Forex trading strategy, you can get very good trading advantages.
The best of both is the random and relative strength index (RSI). Both of these visual settings and a quick tour of either one will help you determine if the price momentum is turning. Of course there are many others, but the above are the best two.
Successful foreign exchange trading is mainly for victory. If you use motivation, you will achieve this goal - you will not seek opportunities to make money and make money in order to perfect your market timing.
So, let Momentum Convulsors and Apps be part of your basic Forex education and they will guide you to the success of currency trading.
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Orignal From: Forex Education - Why You Cannot Predict Forex Prices
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