Movement of exchange rates
Trading, like none of the types of financial activity, is built on constant monitoring of the market situation, and if you are more careful, you can notice a lot of patterns associated with the behavior of exchange rates and the actions of key market players.
First of all, you should make sure on whose side the market makers of forex play today, they make the weather on the stock exchange and not thousands of small investors that do not particularly affect the currency market.
If the volumes grow, when an uptrend appears, then the goal of the major players at the moment is to raise the price of the currency pair and if they succeed, the price will move for some time in the same direction.
Unfortunately for Forex, unlike the stock market, it is difficult to control the total trading volumes, for these purposes, there are only a few available tools for technical analysis the indicator of volumes and the indicator of open positions. The reliability of the first data is hard to believe, and the second tool only shows the ratio of short and long positions for certain currency pairs in one of the dealing centers.
It is especially important if, with the growth of trading volumes, one of the significant levels breaks down, it allows to think that most players are confident in the current trend and the course is likely to continue its movement in this direction.
A strong trend always has a basis, and it does not matter whether you know or not the reason for its occurrence. Especially it concerns the factors of technical analysis, the most important of which is the demand and supply of currency.
The preservation of trends after the close of trading sessions is observed in the event that both of the currencies that are part of the currency pair belong to the same time zone. For example, the news on the euro / pound currency pair is concentrated on the European forex session, and if during the day, under the influence of the euro news began to become cheaper relative to the pound sterling, this trend will remain at 80% until the next session.