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There is no magic rule which will determine the exact time the market will dry up and see volatility disappear.
The general cluttering, churning, or ‘boxing’ of price action are the first signs of poor trading conditions and low liquidity.Generally the market will pause in anticipation of the next move from central banks.
There is generally a ‘theme’ or ‘situation’ surrounding market consolidation like a debt crises, or if a central bank is going to print money or not.The market wants to know what action the government‘s will take to respond to the ‘crisis’ at hand.Governments and banks are fast to acknowledge the problems – but are slow to respond.
The time difference between acknowledgement and action is when we see market activity die off and periods of low volatility born.
Notice how the EMA’s just flatten out when the market momentum dies out.
Once a ‘solution’ or decisive action is taken from the higher powers of the Forex market, the charts will experience a strong rally or sell-off, a reflection of the outcome of the problem or event.
It’s not my style to follow central bank policies, you can never catch the moves as the market reacts too quickly when these press releases come out.
It’s better to wait for a trade signal to develop inline with the breakout momentum, as things will have calmed down by then and give you a much better opportunities to get in with the market, safely.
Don’t get caught up in the fundamentals too much – everything is reflected in price at the end of the day, there is no need to try trade the news.
To learn more, i highly recommend you to get your copy of my ebook, it is 168 pages, and it covers a price action trading method that helped thousands of traders.if you are interested, click on the link in bio or send me a private message.
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On this day 3 years back (16th July 2016) I was in my room (Ga Rankuwa, Pretoria) during school holidays while everyone went home trying to crack Forex Market, nothing went my way ... but look at me now! If you Die poor, it's your fault. #BeBetterThanTheirParents #trading #forex #forextrader #forexsignals #forextrading #forexlifestyle #forexprofit #forexsignal #forexlife #forexmoney #forexmentor #forextrade #forexbroker #forexbrokerkiller #money #fbk #investing #makemoneyonline #onlineshopping #online #investor #sa #southafrica
My FIRST ever SWING trade Been holding this up for weeks Don’t BE hard on yourself, be PATIENT if you want to be a good trader.
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On this day 3 years back (16th July 2016) I was in my room (Ga Rankuwa, Pretoria) during school holidays while everyone went home trying to crack Forex Market, nothing went my way ... but look at me now! If you Die poor, it's your fault. #BeBetterThanTheirParents
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Joshua’s story is powerful ...
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From growing up in the streets, to serving and getting paralyzed, doctors telling him he’ll never walk again, to taking a spiritual journey and understanding that you must do in life what makes you happy
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Struggles turn you into an absolute boss mindset Big impact this guy is going to make ❗️
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