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Forex Traiding

Analytics and trading signals for beginners. How to trade the EUR / USD currency pair on March 9? Analysis of Monday deals. Training



Hourly chart of the EUR / USD pair. The EUR / USD currency pair on Monday, March 8, continued its downward movement right from the very moment of the opening of trading. No pre-correction, nothing. Downward movement immediately. Thus, we have a strong downtrend, but novice traders cannot reject it. As we said earlier, in previous articles, each trading system is tailored for a certain type of movement. There are no trading systems that work equally well in a flat, and on a strong movement, and on a regular movement. Our recommendations are based on the simplest possible analysis for beginners. Now the movement is not standard, so trading signals are simply not generated. It turns out a paradoxical situation – there is a trend, the trend is strong, but there are no signals to trade down. On the other hand, such strong and recoilless movements do not happen often, therefore, if you adjust the trading system to such a movement, the system will give losses much more often than when the pair movement is normal – with regular corrections. Thus, we recommend that novice traders do not get upset because such a strong movement has practically failed to work out. The main thing is to understand the basic principles of the market, the movement of various instruments and make a profit in the long term. On Monday, March 8, no important macroeconomic statistics were published either in the United States or in the European Union. Thus, the macroeconomic background today could not have any impact on the movement of the EUR / USD pair. The same goes for the fundamental background – there were no events today. But, nevertheless, the pair continued to move down. This is the main distinguishing feature of a strong trend – there are no apparent reasons, but the pair is still moving stubbornly in one direction. One can, of course, conclude that the US Treasury bonds continued to rise in yield on Monday, and therefore the dollar continued to strengthen. However, this factor, from our point of view, is absolutely contrived. The dollar against the pound sterling did not grow today. The growth in the yield of American bonds began much earlier than the current round of growth of the American currency. You can just as well attract any event in the world to the movement of any pair. There is no direct correlation between the rise in bond yields and the rise in the dollar. On Tuesday, March 9, the only important report of the day is the change in the volume of GDP in the European Union in the fourth quarter. This is already the second assessment of this indicator, so the markets are morally ready to see the “minus”. Thus, if a strong deviation of the actual value from the forecast does not happen, then most likely there will be no reaction to this report. On March 9, the following scenarios are possible: 1) Long positions at the moment remain irrelevant, and the situation as a whole remains confused and ambiguous. It is recommended to buy the pair not earlier than breaking the downtrend line, that is, the cancellation of the current downtrend. It should be remembered that if at the moment the signal is formed, the price has already traveled a long distance, then the residual impulse can be extremely weak. At the moment, the price is very far from the trend line, therefore, most likely, no buy signals will be generated on Tuesday. 2) Trading down now looks more appropriate, but it will require the formation of a signal from the MACD indicator during the day. The closer to the zero level such a signal is formed, the more chances for it to be worked out. The targets are located at a distance of 40-50 points from the entry point. When a clear signal is formed and profit is accumulated in the amount of 15-20 points, we recommend setting Stop Loss to breakeven What is on the chart: Price levels of support and resistance – levels that are targets when opening purchases or sales. You can place Take Profit levels around them. Red lines – channels or trend lines that display the current trend and show which direction it is preferable to trade now. Up / down arrows – show when reaching or overcoming which obstacles to trade for an increase or decrease. MACD (14,22,3) – histogram and signal line, the crossing of which is a signal to enter the market. Recommended for use in conjunction with trend plots (channels, trend lines). Important speeches and reports (always contained in the news calendar) can greatly influence the movement of a currency pair. Therefore, during their exit, it is recommended to trade as carefully as possible or exit the market in order to avoid a sharp price reversal against the previous movement. Beginners in the Forex market should remember that every trade cannot be profitable. The development of a clear strategy and money management are the key to success in trading over a long period of time. Material provided by InstaForex – www.instaforex.com

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