To make it easier to read the forex market, you can:
- Look at the best times to trade by observing the forex market sessions. Per day, the forex market can be divided into four main trading sessions: the Sydney session, the Tokyo session, the London session, and the New York session. Each session has different characteristics that can be learned and maximized to earn profits.
- Use technical analysis to look for the right opportunity. By reading price action signals or using technical indicators, you can get buy or sell signals more accurately. Depending on your strategy, you can refer to candlestick patterns, Moving Average signals, or even combine both methods to get the best technical opportunities.
- Fundamental analysis can also be utilized so you don't trade against the market. It's important to always be aware of the economic, political, and social conditions of the countries that issue the currencies you trade. If the economy shows solid results, then usually its currency will move higher in the forex market. However, if the country's economic prospect is not good, the currency tends to decline.