All markets go through natural cycles and form a rhythm. When you understand these cycles and can identify them, it simplifies your trading tremendously giving you more confidence to trade.
All markets go through the four basic stages:
- Consolidation after a prolonged downtrend.
- The Uptrend.
- Consolidation after a prolonged uptrend.
- The Downtrend.
- Rinse and Repeat.
To help you understand market stages better, I’ve created a lesson page on forex trading basics. You can read about the four market stages here:
The Four Market Stages - Natural Rhythm Of The Markets
Making Trading Simpler. Trade Smart!