I used to trade forex from 15 minute charts which meant I was sat at my computer for up to 12 hours a day, looking for trades, reacting to moves and losing lots of money in the process! I now do my main analysis on a Sunday and make detailed notes for myself and members of my forex mentor program.
My Forex Analysis: How I trade now
I am looking for trends and direction.
Major areas of previous support and resistance, trend lines, candle stick formations, emas, et al.
I also read the financial news papers and online articles. It’s a fairly long process but I only have to do it once a week.
I also make a note of upcoming news events that can move the markets. To do this I use this forex calendar. I make a note of the date and time of scheduled “red flag” news.
These are news events that are likely to make the market move, often quickly and unpredictably. I then make sure that I do not open trades just prior to these events. I move stops to entry or close trades if I feel that the news could be particularly volatile.
In a separate video later this week I explain how I trade around the news, but never during a red flag announcement.
At the market open I then look to see if there are any “gap trades” – often price will open at a different price on a Sunday evening. I do have a simple strategy to take advantage of these gaps. I will cover this in detail in my mentor site.
Making the decision
Once I am satisfied that the initial surge is finished I place forward orders for my “A” list of potential trades. I then concentrate on 4 hour charts looking for other trades during the week. By trading from 4 hour charts I only need to check in with my trading platform every 4 hours. I have a look 15 minutes before the candle close, decide what I will do if xyz happens at the candle close. I double check that there is no red flag news due and then either place a trade or walk away – that’s it!
My goal is to be finished trading by Wednesday wherever possible. I rarely trade on a Friday as historically it was always my worst day and most of the moves have already taken place. I go into advanced forex strategies in much more detail via my mentoring service forexmentorpro. Here you can start learning advanced forex strategies and much more today.
Further Information on how I do my forex analysis
This video was taken from my forex mentor program. I explained to members how I do my analysis and how I trade around the news. In a separate video I went on to show them the trades I was looking to trade. You can find examples of my detailed analysis on the blog: Forex Blog.
I and my colleagues provide this type of detailed analysis every trading day, before the event. We show you what we are looking for and why. The goal is to teach people how to trade for themselves, not just blindly follow our analysis. I also show how I cancelled a trade prior to a big news announcement on the Gbp/$. This was a good decision on my part. The news came out much better than expected and price simply shot up and broke my intended entry area.
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