Can you really predict the Forex market?

Many new forex traders think the core of a forex trading strategy should be predicting where forex prices will go. You cannot predict the future and if you try, your predictions will be as accurate as your horoscope.

How do you predict the direction of the market?

Options Indicators For Market Direction. The Put-Call Ratio (PCR): PCR is the standard indicator that has been used for a long time to gauge the market direction. This simple ratio is computed by dividing the number of traded put options by the number of traded call options.

Is forex a gambling?

You should always have these aspects in mind, and always remember that forex trading is not gambling. When you accept this, your decision-making becomes better, and you can learn to develop strategies on how to make profitable trading positions. Forex trading is very different from spinning a slot machine.

What are forex trends?

A forex trend is broadly defined as the direction in which a currency pair is moving. Currencies usually do not rise straight up, nor do they fall vertically down. It is more common for them to retrace some of their decline or advance, before continuing in the direction of the original forex trend.

What is forex trading strategy?

What is ‘Forex Trading Strategy’. A forex trading strategy is a technique used by a forex trader to determine whether to buy or sell a currency pair at any given time. Forex trading strategies can be based on technical analysis, chart analysis or fundamental, news-based events.

What is forex currency market?

The foreign exchange market (Forex, FX, or currency market) is a global decentralized or over-the-counter (OTC) market for the trading of currencies. This market determines the foreign exchange rate.

What is the forex platform?

A Forex trading platform is a type of software used by currency traders to help analyse the market and execute trades. Trading platforms provide charts and order options – open, close, and manage positions. Trading platforms vary in structure, functionality, and quality.