Here’s the rules…if you follow it will increase your chances of winning
There are two analysis you must follow 1st - technical and 2nd fundamental.
Technicalor technically you must;
1. Try to identify the trend (tips - use alligator)
2. Identify where to buy and sell (identify snr, only buy if trend is uptrend, only sell if trend is downtrend - never open position if trend is retrace)
3. Identify ther target and STOP LOSS (SL is my weakness i sometime forgot to put it)
Fundamentally of in fundamental;
1. Please look news calender - forexfactory is appropriate , if you advance easy-forex calender is good.
2. US index
3. Gold market
4. Crude oil market
These items above, you can see the performance of dollar
* If you can try identify also …what currency is stronger against other
Trend is very significant important in forex market. In fact it is very important in any market. Do you know how to identify trend. the classic method is to monitor carefully higher higher and lower higher for uptrend and higher low and lower low for downtrend. In other words try to monitor or closely look at peak and valley or the market - if peak and valley consistently getting lower and lower then the downtrend is occurred and vice versa if peak and valley consistently going higher and higher then that is a uptrend. It may experience trader could get it easily or it may takes a lot of practices but if you can identify that is your weapon of success.
but of course there is an easy way of identify the trend. It is by using a alligator indicator. Take a look at picture below.
Easy right but also be carefull and need any filter may be you can use ADX etc. Good Luck and happy trading
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I come up with testing strading strategy. Let see the method/approach.
Buy at the breakout of Support or Resistance anticipates the trend (in this case to measure the trend is alligator and some filters – SMA 50 and SMA 100 and also RSI. It could be seen that the red color is red for resistance and blue color is for support. In at the chart, the trend is UT then only breakout of resistance is valid for trade and don’t think of sell, only buy.
So the entry as I told before is the breakout of support or resistance. In this case is resistance due to the UT. The SL and TP is a must. The SL is at previous of support or resistance. And of course, since at the chart is UT our SL is at the previous support. Draw a Fibonacci retrenchment from entry (in this case is resistance) and ant the SL (in this case is previous support. The level of 161.8 should be our TP 1 and so on. But remember if the support and resistance is close together – the breakout may explode and it is good to take also TP2 at level 261.8 Fibonacci. But if SnR is to wide, it is safe to take only level Fibonacci at 161.8. *****Never trade if SnR is too wide. It may reserve before its meet target. See chart below. Also be careful when the alligator in interlining – not showing either UT or DT. Stay out. Only trade when you see UT and DT – lines of alligator has no touched each others. Never entry as well if overbought or over sold – you can see at RSI or almost overbought or oversold
This only for testing. trade with your own risk.
It may go north @ BUY due to strong support and due to divergence but if the support break, then ready to SELL. Just my opinion.
DO EU will bounce. It touch support at the same time it landing at fibo level 61.8. Let see the chart?
my favor is bounce. just my 2 cents.