Spot currency trends as easy as 1-2-3: USDSGD and gold price action
Spotting currency trends is simple
Forex trading is sophisticated. The market demands its pound of flesh when we make mistakes. Everyone wants to make more money but there are many things to juggle: dealing with one’s psychology, managing position sizing, trading high impact news, figuring out multiple time frames and so on. Getting the trend right for each currency pair is the first step. Fortunately it should be as simple as 1-2-3.
The right way is to keep it simple and tight. Recall:
- Up trend is series of higher highs, higher lows
- Down trend is series of lower highs, low lows
- When highs and lows go sideways, market consolidates
USDSGD starting a new leg
- May to July – this forex pair trends up with series of higher lows, higher highs
- August – pair consolidates July move; price action sideways with (near to) same high, same low
- September – pair breaks down range of last two months in a bearish expansion; pulls back, tests former support turned resistance, continues
Gold consolidates, looking for gold price retracement
- July – until July, gold continues to fall with lower low, lower high sequence
- August – makes big bullish expansion, rallies
- September – consolidation month as price tightens August range
Some other examples
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’.
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