Most traders spend time studying how to identify trends or reversals on the chart without reflecting on what those trends or reversals are causing. There are various factors affecting currencies on different TF time frames and it is often difficult to decide the most significant one at any point in time, even though many investors believe in the superiority of one or another factor. You should have, at least, a clear understanding of basic mechanisms to get an idea of the relation between the factors and the price action on different TF time frames . Forex is not an easy exchange. This kind of thought will easily, eat away from your end result. Fortunately, there are ways of understanding each of the economic and political affecting currency. Currency prices are not changing constantly. Moreover, many stock traders find value in foreign exchange markets because they are related to similar main factors that generate different volatility levels, such as supply and...
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