The Forex Signals

The Forex Signals: When you are starting out as a forex trader it is important to understand all of the small steps you should take before deciding what to trade. Knowing when to buy or sell a currency may appear daunting at first, but there are some basic guidelines you can use to spot trading opportunities. Firstly, you should review the previous day’s market activity so that you know what the market sentiment was and how investors may be feeling now. Most traders rely on fundamental or technical analysis or a combination of the two for this. You should focus on the pairs you are most interested in and see how they have behaved previously — for example, check the high and low levels they hit, and the support and resistance levels they touched. You should also review yesterdays news in order to gauge the market sentiment. Pay special attention to unemployment and economic growth indicators as well as what matter most, interest rate decisions. Secondly, you should check the economic calendar to see what news and announcements are planned for the day. Currency rates tend to react to economic reports as they are the main barometer of a country’s economic health. Announcements from central banks and those relating to employment may provoke the most market volatility, so it is important to note the time of day for these scheduled releases and the currency pairs that may be most impacted. You should also review the daily outlooks which summarise the day ahead and give indications of market …

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