consolidation forex indicator

Read 2 Charts Reveal What Is The Trader's Action Zone. A price consolidation is when after a trendy move by market, prices come to a flat period where prices dont move much at all on either side. The good news is that there are ways to predict forex market consolidations and in here I will show you the 4 simple ways that will give you are greater chance of staying out of the market when it is in consolidation. When Im trading, I make sure to check forex factory calendar to ensure that no high impact news is going to impact the currency pairs that Im about to trade before I place a trade. Most times, it is usually after the fact that traders go: Oh shit! Read Learn These 4 Simple Confluence Trading Price Action Techniques The 4th way to identify pending price consolidation is to watch for a break in the trending swing high/low pattern You see, when price is trending, it has a structure and its this: in an uptrend.

Consolidation forex indicator
consolidation forex indicator

This is kindergarten stuff for traders. Well its basically because as Christmas approaches, volatility in all of the major currency pairs always tends to drop off quite considerably. If every trader knew when consolidation was going to start, they will all be filthy rich. That was a consolidation! The word predict means you are trying to tell the future. What is price consolidation? Heres an example of what Im talking about: In the chart above, notice that the swing highs and swing lows form net open position forex calculation the foundation for knowing that a market is trending and if the market is trending it will be making higher swing highs and higher. As a matter of fact, price action trading is like thatbased on the behavior of price patterns in the past, price action traders can make reasonable assumptions that price will go up or down because this pattern or that pattern is forming right now. So if the market is consolidating, it is very difficult for you to trade properly because: all trend trading strategies and systems will give you many false signals. Let me show you an exampleThis is the weekly chart of nzdusd.

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