Demo Account Guide
Demo Account Guide
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Forex Price Movements And Trends


J. Son

Aug 1 2017 10:36

I'm still learning forex and just tried a demo in the EUR / USD pair. I was confused because I happened to open several times, I lost due to big news.

For example, on the evening of 31 July 2017 about 10 PM, there was a tremendous price movement. One upright candle shot up to more than 50 pips. But when I checked on the ForexFactory there was no big impact news being launched at that hour.

So, why could something like this happen? Does it have anything to do with political turmoil or other causes? Thank you.


Daniel Robson

Aug 8 2017 11:26

Around 10 PM, there was no fundamental data release from the US, if political news could not predict the impact. What we can monitor is the current market sentiment based on price action and technical indicators. Pay attention to the direction of market sentiment on the EUR / USD H1 chart on the day and hour below:

chart

Before 10 PM, a formation of three white soldiers (3 bullish candles in a row) showed bullish sentiment. Pay attention to the price that has broken through the 21 ema resistance curve, and the parabolic SAR indicator point that has moved below the candlestick bar which shows a bullish movement.

Besides that, the MACD curve has crossed the signal curve (red color) and moved above it, and the OSMA histogram line is still above the 0.00 level. Also, the ADX indicator histogram line is green which indicates a bullish sentiment. In conclusion, at that time market sentiment was still likely to be bullish, so if you want to open a position, you should enter buy.


Kahfi

Aug 11 2017 12:48

That's an uptrend ... there are more white candles and bigger than black candles ... I won't sell it if it's like that


Greenwood

Aug 13 2017 07:37

@Kahfi, In my opinion, looking at white candlesticks more than black candlesticks is not a good way to see trends. Try Zoom In or Zoom Out the chart, the number of candles will change. The calculations will change. And finally, the trend can change. Even though it was done at the same time.


Kahfi

Oct 15 2017 03:42

Yes, you are right, if I zoom out, the candles become a lot. how to count it. but if I enlarge it, only 15-20 candles appear. if so, how do you determine the trend?


Tokio

Aug 17 2017 04:26

Counting the number of candles actually can not represent the trend that is happening at that time. So the results can be very biased and change quickly later. Especially if you change the zoom level from the chart itself. There are many ways to determine your own trend.

1. Using Moving Average As A Filter For Forex Trends

trend filter


2. Draw Channels To See Forex Trends

trendline channel