Forex Today

A window into how the pros trade can offer newbies a valuable lesson on how to enhance their Forex activities. Finding the right time to place a trade is one of the biggest challenges a trader faces. Many however, have discovered that using price action can make this task somewhat less daunting.

The first step to spotting the entry moment includes scanning different time charts. The experts suggest first deciding on the right pair to trade. If gold is in the news for instance, they say that trading the Aussie is like trading gold. So it may not be a bad time to check the AUD/USD, since this shiny metal is known for lighting the path to profitability.

These traders often review the charts at the same time every day. And they usually suggest doing so around the times when the American session closes and the European opens. It’s at those hours when market conditions are quiet and the day is starting in Asia.

While scanning the time charts, the pros look for trends, for support and resistance levels and for price changes. They check to see if there’s an established trend or the market is range-bound. They mark important levels because “horizontal levels” and currency value changes are crucial combinations. They generally trade with the trend and wait for the pin bars to be in line with the most recent trend development. If all the criteria are present, they proceed with placing a Forex trade.

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