Analysis of macroeconomic reports:
No macroeconomic events are scheduled for Tuesday. On the one hand, this is good because novice traders won't see sharp rises and falls in currency pairs today. On the other hand, it's bad because there is also a 90% probability of no movements today. Of course, market movements don't only occur on days with important macroeconomic publications. However, the market tends to trade much more actively when they are present.
Analysis of fundamental events:
Among the fundamental events on Tuesday, there are several noteworthy ones. However, all these events have almost no potential to impact the movements of the euro, pound, or dollar. In the EU, speeches by Philip Lane and Christine Lagarde are planned. Dave Ramsden from the Bank of England is scheduled to speak in the US. In the US, representatives from the Federal Reserve, including Lael Brainard, Michelle Bowman, and Christopher Waller, will also make statements. But, as mentioned earlier, there is no expectation of significant statements from these officials, as all three central banks are not inclined to raise or lower the key interest rate soon.
General conclusions:
Essentially, on Tuesday, traders have little to focus on. Most of the day has already passed, and it is evident that movements are practically absent. Most likely, this situation will persist until the end of the day.
Basic rules of the trading system:
- The strength of the signal is determined by the time it takes to form the signal (rebound or overcome the level). The less time it took, the stronger the signal.
- If two or more trades on false signals were opened near any level, all subsequent signals from that level should be ignored.
- In a flat, any pair can generate many false signals or not generate them at all. But in any case, it is better to stop trading at the first signs of a flat.
- Trades are opened between the start of the European session and the middle of the American session when all trades must be closed manually.
- On the 30-minute timeframe, trades based on signals from the MACD indicator can only be made in the presence of good volatility and a trend confirmed by the trend line or channel.
- If two levels are located too close to each other (from 5 to 15 points), they should be considered as a support or resistance area.
What is on the charts:
Support and resistance levels – levels that are targets when opening buy or sell positions. Take Profit levels can be placed near them.
Red lines – channels or trend lines that reflect the current trend and show in which direction it is preferable to trade now.
MACD indicator (14, 22, 3) – histogram and signal line – an auxiliary indicator that can also be used as a source of signals.
Important speeches and reports (always included in the news calendar) can greatly affect the currency pair's movement. Therefore, during their release, it is recommended to trade as cautiously as possible or exit the market to avoid a sharp reversal of the price against the previous movement.
For beginners trading in the forex market, it is important to remember that only some trades can be profitable. Developing a clear strategy and money management are the keys to success in trading over the long term.
