Analysis of macroeconomic reports:
There are no macroeconomic events planned for Tuesday. Therefore, it's unlikely that we will see strong trends during the day. The British pound will likely remain within the sideways channel and continue to gradually move towards its upper boundary. Recently, the euro has been stuck between the levels of 1.0835 and 1.0904 and will likely remain in a sideways channel.
Analysis of fundamental events:
There are no fundamental events planned for Tuesday either. The European Central Bank is set to hold their meeting this week, while the Federal Reserve and the Bank of England will have their meetings next week. Therefore, it's not surprising that the market is lying low and waiting for important information that may allow it to make medium-term conclusions. For now, both currency pairs remain within their sideways channels with low volatility and no trends.
General conclusion:
On Tuesday, there is nothing for beginners to focus on. There won't even be secondary events during the day. Therefore, we will likely see the same movements.
Basic rules of a trading system:
1) Signal strength is determined by the time taken for its formation (either a bounce or level breach). A shorter formation time indicates a stronger signal.
2) If two or more trades around a certain level are initiated based on false signals, subsequent signals from that level should be disregarded.
3) In a flat market, any currency pair can produce multiple false signals or none at all. In any case, the flat trend is not the best condition for trading.
4) Trading activities are confined between the onset of the European session and mid-way through the U.S. session, after which all open trades should be manually closed.
5) On the 30-minute timeframe, trades based on MACD signals are only advisable amidst substantial volatility and an established trend, confirmed either by a trendline or trend channel.
6) If two levels lie closely together (ranging from 5 to 15 pips apart), they should be considered as a support or resistance zone.
How to read charts:
Support and Resistance price levels can serve as targets when buying or selling. You can place Take Profit levels near them.
Red lines represent channels or trend lines, depicting the current market trend and indicating the preferable trading direction.
The MACD(14,22,3) indicator, encompassing both the histogram and signal line, acts as an auxiliary tool and can also be used as a signal source.
Significant speeches and reports (always noted in the news calendar) can profoundly influence the price dynamics. Hence, trading during their release calls for heightened caution. It may be reasonable to exit the market to prevent abrupt price reversals against the prevailing trend.
Beginners should always remember that not every trade will yield profit. Establishing a clear strategy coupled with sound money management is the cornerstone of sustained trading success.
