Forex Focus: Making Sense Of Currency Movements by Grace Cheng
With currency movements so randomized,
how could you possibly know
when to enter and exit trades?
One of the most frequently asked
questions among forex traders is certainly this: What on earth is [any
currency pair] doing? This question
tends to come up especially when you
have open positions in the forex market.
The nonstop fluctuations of a currency
pairís exchange rate may seem
totally random. Some traders will question
if it is possible to even trade accurately
in such a random market.
Making sense of currency price
movements is not transgenic science.
Once you know the core behavior of
currencies, you will find it easier to
understand their movements and exploit
them for profitable trading opportunities.
FUNDAMENTAL BEHAVIOR OF CURRENCY PRICES
Currency pairs either move in a trend or within a range. This
concept is so simple and yet so revealing that I have to say it
again. Currency pairs either move in a trend or within a
range. Once you digest this fact, you will come to the
realization that currency price behavior can be understood to
a large extent and exploited to your advantage.