Introduction

The first obstacle beginners face when starting FX is the problem that the charts look difficult to read.
Lines and candlesticks line up, you don’t know where to enter, and you end up entering by feel and failing….

However, charts are very simple.
Market conditions can be broadly divided into“trending” or “range-bound” — only these two types exist.

• In a trending market: price continues to move in one direction

• In a range-bound market: moves up and down within a fixed range

? Once you can discern this, unnecessary entries decrease and your win rate improves.

What is a Trend?

A “trend” is the flow or direction of the market.
In an uptrend, “the low points rise, and the highs are updated at the same time.”
In a downtrend, “the highs are lowered, and the lows are updated.”

Example:

• Dollar/Yen moves from 140 to 141 to 142 while the lows are rising → uptrend

• Conversely, 142 to 141 to 140 with the highs falling → downtrend

What is a Range?

A “range” is a state where the price moves up and down within a fixed amplitude.
For example, if USD/JPY moves between 140.0 and 141.0, this is called a “range market.”

Beginners should especially note that in ranges there are many “fakeouts” where it looks like a breakout but then reverses.
Rather than forcing a trend, a counter-trend strategy that respects the barriers is effective.

? Up to here is the “basics of trend and range.”
Next is the paid section, where we will be more specific“how to judge and how to build a strategy”will be explained.