To consistently make a profit in the forex market, you need a trading strategy, certain technical indicators, economic calendars, and opportunities. Because forex trading is highly speculative, the sentiments of the overall market can be significant for the estimation of specific currency pairs.
However, as a new trader in the forex market, you’ll need to realize certain things to make profitable decisions based on these currency pairs. With the help of our best forex trading mentors, you can learn to trade in currency pairs that would net you greater profits and help you achieve your trading goals.
Let’s discuss why it’s important to make timely trades leveraging sentiment to better predict profit opportunities and price shifts.
Resistance And Support
Resistance and support lines are identifiable price ranges where trades generally anticipate the prices to move or slow down. These lines can be formed using existing activities like range-bound prices or Fibonacci levels. They also have a strong correlation with a currency pair and trade sentiment regarding pre-emptively trading on price reversal expectations. However, these resistance and support lines can also shift the sentiments.
Individual brokers may publish reports based on sentiments that traders have on their platform. With regular updates on short and long positions, the traders may get an overall idea of the currency pair sentiment on that trading platform.
When it comes to forex trading, the pivot points are identified at potential price positions and levels where the pair can change direction. These points also correspond with the changes in the sentiment when the lines of resistance and support or influential trends build momentum for shifting a price activity.
Several calculations can be used for identifying a pivot point through resistance and support lines. These calculations can be intricate for new traders to realize in their early trading stages. This is why it’s advised that you take help from the best forex mentors to avoid losing money.
Traders also need to remember these calculations to identify possible shifts or pivots to plan their trades accordingly. Identifying these shifts successfully will positively affect your forex trading portfolio as you’ll be executing more opportune trades for greater profit.
You can avoid losing money in the forex market by entering it with the appropriate knowledge of currency pair sentiments. Mentors can help you with that and also improve your trading psychology.
If you’re looking to make more profitable trade decisions, Trading Mentor offers an online mentoring platform where you can learn and improve. Our forex and stock trading courses for beginners are designed to help new traders realize various complexities of the forex market to capitalize on them. Contact us today and get to know their professional mentors.