Forex Analysis You Should Start Your Day With.
So you have a basic understanding of Dynamic Fibonacci which helps you look at price action and you have a tool so now what?
Now you have to put the pieces together.
You start with the Longer Time Frames and take note as to where price action is in relation to the previous day’s high and low.
If it’s above the previous day’s high or below the previous day’s low then look for start of or continuation of a trend.
If price action is within the previous day’s price action then your market is likely range bound. Once you have some perspective on market environment then take note where price zones lie on that daily.
Once you have a sense of the larger time frame which acts like a compass so to speak, then take a look at your Multi Time Frame FxPM Matrix.
Next, take a look at your matrix and see what zones match up in each time-lane with the prices within the price zones from the charts.
It’s important to remember that what we are trying to do is match up as many items from our arsenal of trading knowledge and skill with what we are actually seeing via our FxPM trading tool in order to decide what actions we will or will not take.
The point is to find agreement amongst the aforementioned items in order to stack probability in our favor.
If you do this each time you come to your trading station then you are likely to be in sync with market conditions. If you have trouble staying focused on your analysis then don’t leave yourself dependent on your own human error.
Make a checklist and work at mechanically going through your checklist each time you approach the market or at times when what you are doing simply isn’t working.
Profitable trading to all!
FxST Education Specialist
Dr. Debbie Badawi’s formal education, training, and career is in the field of education. Ten years ago, upon an early retirement, she entered the world of trading equities and then found her passion in day trading and swing trading the Forex Market. Although she trades various currency pairs, she spends much of her trading focus on the EUR/USD. In addition to trading, Debbie mentors other traders, works with the team at FXST, and runs her educational consulting business where parents find educational solutions for their children. When asked what’s next or what’s Debbie’s future? Debbie smiles and precisely says, “ a simple life comforted by a six figure income and a financially free retirement.”