Translated from Russian by Google Translate
2 Сентябрь 2009

Forex Market. Learn to read the data

For one of the major problems, the consequences of which is the loss of funds, can be attributed incorrect reading of the data. It would seem that all elementary: to monitor the changes of parameters and numbers and make predictions. But not so simple. Today’s FX market - is not that long ago where enough to observe the changes in numbers, events, etc. For a successful trade must pass a quality forex training, which you will be able to analyze the current events, data, and communicate what is happening between them in the logical chain. This approach certainly will effect at least in the short term.


Able to read data - means, in their assessment of the market complex. If you are using to assess the market technical analysis, but do not know what the reading of data, then you trade at your own risk.

Very often the graphs of prices appear intricate shapes that can be misinterpreted and cause quite the wrong signals. It is for this reason it is worth remembering the golden rule, which perhaps has already become classics: «Trade with the way you see it at the moment, rather than as you might think». You significantly reduce your risk if you learn how to read the data. Quick turns and false breakouts will no longer put you into a blind alley.

All this is based on the information given by the price and volume. By analyzing all the flow of transactions will be concluded on the balance of forces in the currency market. After all, very often these forces remain in the shadows and make themselves felt at the most inopportune moment. So you will know the real actions that are taking market participants, and will not see the forex through a veil of darkness.

As it may seem strange, but there is a classic book, on which they could pass quality Forex training for reading data. To gain knowledge in this area, you need a long time to trade in the currency market and carefully analyze all the incoming data. But do not be afraid of difficulties, because as soon as you hone their skills of reading data, you will considerably raise their competitive level in the forex. It would also mean that you will have access to the hidden pulse of the currency market.

What are approaches to teaching the art of reading the data? Below I will enumerate the most common and affordable:

1. You know what the divergence? Excellent! Look for the difference not only in the testimony of the price and indicators. Try to find it between the incoming flow of information and the real perception of the foreign exchange market. How do you think are interested whether the bulls to maintain the balance of prices in the middle of the sales?

2. Always, at the beginning of your work schedule, determine the key price levels. Then watch the trading activity near these levels. Try to understand how to behave and how the crowd reacts to a price close to these important points. Then try to predict the entry point in accordance with these levels. Answer me a question: «Can you open the correct position before it makes the bulk of market participants?»

3. From the previous paragraph implies that you must learn to be able to determine the levels of breaks up, where you can make a purchase and breaks down the levels, where you can make a sale. If at this time no such opportunity presented itself, the «sitting on the fence» and watch.

4. When you analyze the data, be sure to pay attention to time. It is necessary for the reason that the price fluctuations occur in certain cycles. You should be aware of these cycles is applicable to a particular market instrument. For example, watch the 4-th reversal candle 10 minutes in the early days. Analyze the data as events unfold and notes what time dries up the momentum of price movement.

5. Many market-makers know where the orders are placed and try to move the market towards greater volume. These professionals are trying to put psychological pressure on the players. Their task - set the crowd against his orders, in order to dislodge the amateurs from their positions. Here are more case of professional traders working for large companies and have more capital to carry out the necessary manipulations.
Passing forex training, should know that such manipulation to occur, but may not globally affect the market in the long term. But short-term disturbances created artificially, it is often enough to achieve the goal to knock out competitors from the market.

6. Continuing the idea of the preceding paragraph is worth saying that a red thread through all the forex training is the problem of psychological resistance. Therefore, another useful skill that you must possess - is the ability to analyze the degree of excitement of the crowd. This can be done by comparing the average of the current in your data. The main thing here - is to find the currency pairs are traded with a much larger volume, compared with average. It will tell you that at this time, these currency pairs will be the main theater of action.

7. Do not forget this important point, as the opening price. If you pass forex training in any dealing center, then you must say that the opening price is one of the most important values on which to rely. For easier assimilation of information can be a horizontal line through the point of opening position and constantly relate the present situation the price for this point. As trading signals in this case, you can use breaks down or up on the point of discovery.

8. The latter, a very important point! When the market is not observed any significant activity, try to follow the pros. Conversely, during active operations try to follow the crowd. Remember that the problem of insiders - to push the price in a direction that they want, but they are powerless when the market comes into effect the crowd.