I understand that the forex market will change over time? But im curious like how exactly does it, by that i mean, i use trendline and support and resistance, i believe support resistance and trendline will be effected the same way in the future as it is now? So what I’m asking is how does price change in the future like what changes in the market? Voltility? Reaction around support or resistance? Etc… And if possible how does this effect trading?
I did ask this once before but i am looking to get more details if possible
Thank you very much!
Price changes are often driven by supply and demand, just as in any other asset, but in forex these are influenced mostly by economic performance. When an economy is performing really well, its currency tends to appreciate (leading to a bounce or break of trend lines or other inflection points). On the other hand, a weakening economy is also usually followed by a weakening currency. Volatility is also a factor, as you pointed out, and this is affected by market sentiment or investors’ appetite for risk. Hope this answers your questions!
Some parts of the markets change over time while other remain the same. A valid S/R is a valid S/R. Chart patterns, candlestick patterns etc. remain the same. Those who use indicators, for example the RSI, will have the exact same indicator as it does not change. Traders change much faster than markets to for various reasons. I would focus more on today and not potential future market changes.