How many times have you entered market and got your stop loss hit?
And how many times have you hesitated to enter market only to be disappointed afterwards?
Forex trading is all about predicting the turning points of the market. A trader should have a solid method that will give him the opportunity to jump in a trade just before a turning point.
Forex market is a very stubborn market. It will not change direction unless it has more than one reason to do so. This will be your golden rule from now on in trading:
Forex market turning points are in phases that market has a strong reason to change direction.
During you market analysis try to find out two, or even more, indicators that all project to the same point. For example, you could have a 0.618 retracement with a daily trendline that both coincide in a currency price. This currency price should be highlighted as a potential price reversal zone. The higher the time value you use with your technical indicators the more valid they become.
You could choose among a great variety of technical indicators just 2 or 3 of them and try to find where they point at the same place. These are the places that currency prices have great propability to change direction. As a matter of fact the above technique will enlighten your Forex forecasting capability.
I prefer to use daily trendline resistance or support along with major Fibonacci retracement levels. I choose to trade in points that trendlines cross Fibonacci retracement levels. You could use this technique as a trading system.
Always remember: Put your money on trade for more than one reason!
Then maybe you will understand why Forex forecasting is not for prophets!
Thank you for sharing you interest in Forex with me.