Hi,
I only thought I'd talk about this as I believe it is amazing how many individuals simply focusing on technicals as opposed to finding out what opinion is driving the market. The main reason why retail traders lose money is because they are not sailing their transactions in precisely the exact same way as the institutions.
The huge associations simply use technicals for purpose of entrance or to close a trade. They'd never use indiors since they're trading billions to run a trade.
I use a professional news feed called Ran which lets me know that the opinion of the market therefore why most of the time I am on the winning end of my transactions.
I've made 100's of pips in minutes trading central bank minutes launch, addresses, or even only instantaneous news releases due to hearing the sqauwk through ran.
An example of strong belief can be understood on GBP/CAD. GBP has been murdering CAD for weeks because the pound is bullish due to the BOE suggesting they'll hike rates this season again. The CAD has been super feeble because NAFTA trade talks with USA have not gone in their favor and if deal doesn't materialise the Canadian economy will be harmed by it. This is basically STRONG VS WEAK SENTIMENT CURRENCY = PIPS!!!
You can see in this movie how a gentleman created 50k in minutes throughout the entire Greece saga because he knew the place to buy in -
Forex markets are primarily driven by central banks and geopolitical issues. As an instance if a central bank indies that they are going to increase currency will rally for weeks until the interest rate continues to be discharged. If there is news of them cutting rates then the currency will become bearish.
My advice is if you want to be trading in precisely the exact same way as the huge associations then focus on the fundamentals rather than technicals. Technicals should only account for 20 percent of your own trading.
Thanks for reading and please be sure share your perspectives.