It is known that for efficient trading in the forex market you need to follow the modern trends. But sometimes the trends in the market are very volatile. And if that happens, forex traders, especially beginners, will become very frustrated and confused. That is why every trader should know various trading strategies, especially when the market is unpredictable.
So, here are some useful tips for efficient trade in foreign currencies on an unpredictable market. Of course, you can use these tips when using a demo account. In the end, the use of a demo account will allow you to engage in forex trading and make you prepared for this case.
1. Check your economic calendar. You must be sure that the current movements in the market are not only based on the time of the message. Because, if the economy is really low, you'd better stay out of the market for foreign exchange, until everything returns to normal.
2. Check the pivot points and support and resistance levels. you will notice that resistance and support lines parallel in a volatile market. Thus, you can expect that the market will turn around as it approaches the resistance and support lines. You can also use stohastychny oscillator that will help you identify good trading signals.
3. Use another lamp to test their findings. If the resistance and support lines concerned, it is likely to be a breakthrough. And if this is the situation, you can not assume that the price will turn again. Thus, you may just want to set the orders of the resistance limits and support line for you to catch a breakout occurred. However, you must use another indicator, so you can check their findings.
4. Test your forex trading strategy. Always happens that two pairs of foreign currencies are becoming controversial. For example, USD / CHF and EUR / USD – is two contradictory pair. One of them is sure to rise and the other fall. So you need to plan what currency you trade.