Same cannot be said for any particular indicators in my case
Price movements are just following the market sentiment - a fact that has already occurred, and in Major pairs, as a reaction to fundamentals especially in todayās Covid 19 environment.
In other words, price movements donāt move the market, quite the opposite in reality. And stable markets just donāt exist - never have. Even ranging and consolidation markets are unstable, as are trending markets.
IMO, it will become increasingly more difficult to trade Forex profitably over the next six months. An example of this is - have you ever tried to trade GBP/JPY and make any sense out of the daily price direction?
Well a few things to unpack there. First off your premise that markets are never stable is absolute non sense. Markets are almost always stable enough to chart out clear areas of support and resistance and to trade those areas with percision(at least if you know anything about technical trading). Second you may have a point about covid being a factor in volatility however it has only been bad for the past month which tells me it has more to do with the upcoming election, the possibility of another relief bill and extra covid traders in the market
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If what you believe to be true, everyone would be successful in trading. Support and resistance levels are merely technical indicators, not market movers. And not that reliable, either without other confirmation indicators.
I would add even in a long-term bullish or bearish market, stability is never ensured - you only need to go back decades to realise that truism.
As for Covid 19, itās the largest factor, IMO, which will remain present until a vaccine is found to be satisfactory. Donāt put your technical trade bet on it, though, as no vaccine has yet been produced for any Covid viruses.
Again Iām sorry for you that you canāt trade technical patterns but I hate to tell you itās not the market itās you having a misunderstanding of price action and how it reacts to underlying fundamentals. I win enough trades to where Iām consistently profitable at least every few weeks in a normal marketā¦anyone who knows anything about candlesticks knows what you are saying is nonsense.
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Either you have never studied candlestick charts or you just donāt understand how they work
Good for you. But I would suggest that you focus on your nonsensical beliefs, not mine.
Forex has always been a volatile market, much of it is suspected because of the upcoming US elections and not to forget the COVID-19 vaccine trials and results. Tip: Make sure to select the appropriate instrument or currency pair depending on your desired volatility tolerance.
Were you asking āwhy the hell is the market trending so muchā when you were bagging winning trades in good market conditions? I would guess not. The market is cyclical and there will always be a period of choppiness. The goal during these market conditions is capital preservation. Donāt ever question the market, handle what you can control! Plan Your Trade and and Trade Your Plan and eventually the trending conditions will return my friendā¦ You just have to survive until they do.
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EUR/USD: Covid-19 2nd wave coming strong in Europe vs coming soon US election.
Last week MA trends used to predict an high bearish movement. However EUR went full bully Monday 19th and Tuesday 20thā¦European Central Bank Managers showing up in parallel.
These two months seem to be volatile and the forex market has always been volatile. You can try different strategies and see what works for you.
Lots of nice sounding words that donāt mean anythingā¦tell me how often do you trade and do you make a living off of it?
This is going to be totally anecdotal, but there is something different about 2020 IMO. I donāt think āvolatilityā is the right word. Iād say itās less predictable than it used to be. For example, the trading strategy that my EUR/USD EA uses did not handle this year well at all, whereas the entire history of the pair going back to 2005 was consistent in terms of profits and losses. I had to make some compensatory adjustments; in my case, widening trading hours much earlier in the day. The movement is just different somehow. Momentum and retracement just doesnāt seem to resolve the same way.
Iām sure COVID is the proximate cause, but I havenāt connected all the dots yet. Iāve considered the US equity markets bubbled throughout this thing. I consider a bubble a situation where underlying fundamentals donāt support valuations. Nasty unemployment numbers, everyone staying home, businesses shuttering, and all the while stocks pump along. Sure stocks took a big hit there a while back, but quickly recovered, while Iām likeā¦ what??? Look at the 5yr S &P chart and youāll see a post-COVID equity rebound that I donāt think is reflected in or supported by the economy.
The relationship between interest rates, equities, stimulus, and currency valuations is complex, and when part of it is out of whack, especially amidst a global crisis, I expect the unexpected.
I agree with the hopeful optimism that things may be slowly taking a turn back to normal. I hope they do.
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- I currently trade for a prop firm
- I DO NOT make a living off my trading nor would I want to. I am very diversified which is the best way to go
- I take on average about 2 trades per week, but between scaling out, closing positions and opening new positions I am doing something almost everyday
- Any other questions feel free to reach out
Itās the marketās nature to be volatile and we need it to make money.
With all the recent changes, like President Joe Biden and Vice president Kamala Harris taking office, new executives being passed. There are several ammendments being executed, it is a major reason that market is facing fluctuations.