EURJPY Forex Review:
In this video, we go over a quick review on how to analyze a Forex market. We do not specifically need to be analyzing the EURJPY Forex cross, but this is just an example of determining highs and lows. The methods that we use here are highs and lows and multiple time frame analysis.
Why use this on the Forex Market?
When trading Forex, we have access to long term trends in currencies. This is one of the main reasons traders choose to work in Forex. The markets tend to take long sweeping moves that are highlighted by highs and lows. This makes it easier for us to take long term hold positions in the Forex market. This is not exclusive to the EURJPY Forex cross, but true for most currency markets.
Methods used for Trading Forex:
A combination of methods to narrow our trades down is best. We use a mix of multiple time frame analysis, highs and lows pattern, and Market Profile to determine the key areas for trades.
Multiple Time Frame Analysis:
Multi time frame analysis another narrowing method. It helps us determine when and where there are points of resistance/support in the market. From here we can narrow down our time frame to one that we feel comfortable entering a trade.
Highs and lows trading pattern:
This trading pattern allows us to easily find the direction of the trades. It also highlights key areas of support and resistance in the market. With this information we have the ability to not only place trades but place our stops as well.
Market Profile information:
Market profile provides us with levels of support and resistance depending on the actual volume of trades at specific price levels. Therefore, combined with highs and lows, we can narrow down our stops and entries quickly.