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We know that the Forex market is opened 24 hours on 24, five days a week, or from Sunday evening until Friday evening. The weekend all the exchanges are closed, so even currencies are stationary. The Forex opening on Sunday coincides with the opening of the first exchange of the week in the East. Although it might be possible to do Forex in every moment of the day and in each of the times when the currency market is open, this does not mean that every moment is also good. There are times when it is more suited to trade currencies. To have the greatest chance of success is absolutely indicated to do trading at one of these periods, not outside. The fact remains that even outside the periods of greatest importance is possible to have good results. Surely, you do not make trading Sunday evening, as the majority of exchanges are still closed, especially those of greatest importance, such as the New York Stock Exchange or the London Stock Exchange which is the first in the world for currency traffic. Also Friday and Monday morning are times to be avoided, since it is more difficult to make forecasts, and you risk to lose everything you have done during the week or starting on the wrong foot. Then you should not trade close to, and just after, the release of a very important news. The reason is simple in this case, it would be better to wait for the market reaction to this news and try to ride the wave. Also you should not do Forex during holiday periods, such as at Christmas or at mid-august, since the trades are substantially more thin and it is difficult to make a good prediction. All other times are more or less good. Remember however that also depends on your way to trade.
When you start in the forex trading market, it is important to avoid errors. Usually there are a number of common mistakes that investors make, especially those who are still new. Since forex trading is one of the most unpredictable investments you can make, partly because of market volatility, it can be difficult, if not impossible, to find a strategy that is infallible. What are the best forex trading indicators and how to be successful in this market, even working from home in your spare time? Generally there is no exchange market indicator, best of all, because there isn't always one indicator which function perfectly. It is only by combining the various currency market indicators that you can build a solid trading strategy to be successful. Two of the indicators used by traders at the beginning in the currency market, are the simple moving averages and Bollinger bands. The simple moving average is calculated starting from the average price of a given currency pair for a specified number of periods. You can create moving averages starting with the opening, the maximum, the minimum and the closing values. Bollinger bands give an idea about the instability of the market and help to determine the standard deviation of the market. This gives the trader an indication of the scenarios overbought and oversold, helping to choose its entry points and goals. Two other indicators to consider are the stochastic and the Relative Strength Index. The first is used to find trends in the market, so that you can always know exactly which way to open up their positions. The stochastic is instead considered by many to be the indicator as to the final decision to open a position or not. It is easy to use and very effective. So we have seen that these are the best forex indicators for beginners operating in the forex market. Being able to learn their use really helps the trader. They can in fact be used to make trading in the direction of the trend or even to trade against it.
Forex markets are inherently contrarian. This means that they are regressive and have a natural tendency to pull back to the mean price. This is a big reason why so many beginning traders lose all their trading money and give up. The fact is that most of the time when it feels safe to enter the market it is probably not. When a move in the market is greatly extended in one direction and looks like it will keep going this is usually the exact time it is about to fall back and correct itself. This extension also happens to be the time most beginning traders tend to enter the market. It often takes months or years of losing money before traders learn that they have to wait patiently for the market to contract before entering, and many traders give up before they finally realize this truth. Most indicator based trading systems simply do not work in strongly trending markets. They will give you a sell signal long after a market has started correcting back down and the correction is almost over. Sometimes they give you a sell signal at the very time the correction is over and you should be looking to get long again, or vice versa. If you know how to tell based off pure price movement when a market is exhausted or when it is ready to break out then you have the keys to building a highly profitable and consistent trading method. Price action analysis is the best technique for learning to profit from the forex market. There are usually tell-tale signs a market is ready to correct or the trend is ready to resume that are readily apparent through the analysis of price action. All you really need to know are a few simple patterns and basic chart support, resistance, and trend lines and you have enough information to put together a profitable trading method. Some people try to program indicators and even develop new ones because they mistakenly believe if they put more math and study into their trading technique they will be further ahead of other traders. This simply is false. While you do need some sort of education in technical analysis and price action, it doesn’t need to be complicated or involve programming expert advisers and other fancy non-sense. Once you develop a keen eye for price action setups you will be able to tell if it’s unsafe to enter a trend or that the trend is ready to resume. It’s all right there on the chart, you just need to be shown the way by someone who has walked in your shoes and made it down the path to trading success. Price action can be a great aid to developing your discipline in the market and shaping a relevant market perspective. If you are just starting out and this is one of the first trading articles you have read than I strongly urge you to check out an education in price action. Go to YouTube and type in “forex price action” or “forex price action strategies” and see if you like what you find; there are many good free sources of price action information on the internet. Price action analysis has been the key to my success in the markets and I hope it will be the key to yours. Nial Fuller is an expert on price action forex trading strategies, you can visit his website at Learn To Trade The Market