The Forex Markets Are Great For Beginning Traders - Part 3

in hive-181335 •  3 months ago 

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Currencies are important to most people around the world, whether they realize it or not, because currencies need to be exchanged in order to travel aboard or conduct foreign trade and business.

The foreign exchange market is where currencies are traded. When investors trade foreign exchange (forex or FX for short) they’re buying and selling currencies over the foreign exchange market.

The forex market is the largest and most traded financial market in the world. The forex market has grown to a daily trade volume of over $5 trillion a day which is over 200 times bigger than the New York Stock Exchange.

Today, I talk about the base and quote currency within the forex pair using EUR (Euro) / GBP (British Pound)
as the example.


I’m a supply and demand trader. The premise of supply and demand trading is when the market makes a sharp move up or down the large institutions i.e banks/hedge funds are not able to get their entire trade placed into the market, leaving pending orders to buy or sell at the zone with the expectation the market will return to the zone and the rest of their trading position will be filled.

I use multiple time frame (MTF) analysis to improve my discretionary trading decisions. MTF analysis involves analyzing the same asset on multiple time frames. The rule of thumb when using MFT is you want your charts to scale down/up by 4X – 6X. In my case I tend to look at:

Monthly Charts (curve time frame) – which represents that jet fighter flying over the football stadium.
Weekly Charts (trend time frame) – which represents the concession stands looking down at the field.
Daily Charts (entry time frame) – which represents being on the football field with the player.
4 Hr Charts (entry time frame) – which represents the center hiking the ball to the quarterback.

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After watching some of of your video on Supply/Demand, I hop eyou can help me with a question I have to understand how you determine supply and demand zones. More specificialy, how you determine how large the band is. I realise when some trading pair is moving up quickly and then pauses and moves up again quickly, a demand zone is create at the level of the pauze. The same the other way around, but then I this becomes a demand zone. Since you seem to put a high value to hitting the zones or not, it becomes important at what level to set the lower side and upper side of the bands. Is setting these something that follows TA rules only? When so, can you explain these, or direct me to some article explaining this? Or are these band upper and lower side also contains some none TA like (maybe gutfeel like) influences?

On Forex trading: Would you go into Forex trading with the idea of daytrades, or would you say its better to take a longer horizon?

@edje if Leofinance had a zoom feature, would love to show you some stuff, until then, there is a guy on youtube that I recommend you check out.

Day trading forex is very possible, there are many traders that scalp the markets, but I think one can make more money trading less by swing trading the forex market.

Let me know if you find Austin helpful.

Posted Using LeoFinance Beta

Thanks for the link. Will check a few of his video this weekend.

Interesting video