For those looking for the scientific way to trade Forex I got some good news for you. In order to be scientific about the way you trade Forex you’ll need to have rules and be consistent about following those rules. Let’s begin our exploration.
You trade Forex scientifically you’ll first need to research Forex scientifically. The first part of this process is that we must observe the Forex market and then we must create a hypothesis based upon our observations. Don’t worry, a hypothesis isn’t anything complex is simply a proposed explanation for some observable phenomenon. Let’s say for instance that you have observed a certain pattern when looking at the daily chart of a particular currency pair. In your observations you noticed that when this pattern occurs the currency pair moves upward in value relatively frequently.
Your hypothesis in this case is that when “X”pattern occurs then the market moves upward. You now have a hypothesis on which to base your research. From here you would continue to observe the pattern and seek to find what percentage of the time the market does move upward and by how much.
At this stage if it is discovered that you can buy this market based upon your newfound pattern then you may have the basis of a profitable Forex trading system. As you can see the scientific way to trade Forex can aid you in your research as well as move you closer to finding a consistently profitable Forex trading method.
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