6 Forex Observations Everyone Should Know

By: Kelvin Chan

I'll like to spend the next 10 minutes or so with you explaining 6 forex observations I've gathered from the time I've been trading the currency or forex market.

#1 - Expect pullbacks only 50% of the time on Friday closes (late U.S session) ... these pullbacks typically produce 24~39 pips.

Pretty self explanatory I hope ... Yep, basically you can expect pullbacks only 50% of the time. Whenever the Friday pushes come, they will come fast and furious. Just go along with it for the easy pickins. Any pullbacks will be minimal. As mentioned earlier, they will produce only about 24-39 pips.

#2 - Breaking the 200EMA (15m) and CPP tends to give very strong reliable pushes

If you're watching the 15 minute charts, whenever you see the action breaking through the 200EMA and central pivot point (for the day) simultaneously, be sure to take notice as they will usually result in very strong and reliable pushes. In other words, more easy profits if you would just go along with it.

#3 - Study your biggest losses ... they give clues/lessons

There's something to be learned from every single trade that you take but from my experience, it's the biggest losses that I've incurred that I learnt the most. They give clues to your trading style and personality.

#4 - When I'm tired, I don't trade

This is a no brainer. When you're tired, don't trade because you won't perform well. Enough said.

#5 - When in doubt, please STAY OUT

No one will ever hold a gun to your head and force you to take a trade. So whenever you have doubts about the trade you're about to take, just don't take it and just stay out. That's the best advice I can give.

#6 - Study the longer timeframes over the weekends (Monthly/Weekly 35%, Daily 35%, 4Hr 20%, 1Hr 10%)

Learn to study the longer timeframes and its movements as they will yield the most dividends and payouts for you. Take time to study them over the weekends when the markets are inactive.

It really is my wish and hope that you study and reread over what I've just shared and apply them to your own forex trading journey. All the very very best to you.

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