Understand Forex Market Daily Trends

Topic Covers | Understand, Forex Market, Daily Trends,

The basic starting point for anyone’s day regardless of your trading strategy or system is overall market direction. Understand market direction is essential in order to avoid figuratively ”swimming upstream”.

It is unfortunate but determining market trend is not always the easiest task as you more than likely well know. Why? The classic definition of an uptrend for example is higher highs and higher lows and the opposite for a down trend. Many try to use this in their trading but always seem to sell near the bottom of any down trend, and buy near the top of any clear uptrend.

This is not uncommon, as the classic definition of a trend often means you will identify a nice move near its ending point rather than near its beginning. This can be extremely frustrating as well as discouraging to struggling forex traders. With over 10 years of market experience and a proper understand of how the banks tend to move the forex market, Chad has a nose for market trends.

Everyday the expected direction of both the EUR/USD and the GBP/USD is discussed in the daily market commentary. For many beginners to the forex market this can be a great starting point to begin your trading day. If you as a retail trader get the direction right, you have essentially won half the battle! For those already experienced, it can be a great second opinion you can use to cross check with on a daily basis. It is important to remember that the banks rule the forex market. 10 banks control well over 70% of the daily volume, and therefore they dictate intra-day trend. If you can identify the next direction of the mega banks, you can identify the next direction of the market with a high degree of certainty. This tracking of the banks is at the core of our daily market analysis, and thus why it is so powerful when it comes to giving us probable market trend. How else can you benefit for this daily commentary?