Exchange Demon Direct Transmission! How to profit from the FX market by leveraging investor psychology [Exchange Demon]
Forex trading, including FX, is a game of back-and-forth strategizing among investors, essentially a kind of psychological war. Charts heavily reflect the psychology and intentions of various investors, and by reading them you can infer future price movement patterns. In fact, there are many situations in FX where investor psychology translates into profit.
For example, suppose a currency pair rises significantly. Which investors’ psychology led to the buying? Conversely, when a currency pair falls sharply, how does investor psychology change, and how does that affect trading behavior? Why do trend lines, support lines, and resistance lines tend to form in FX? Why do retracements to half and full retracements occur so often?
These are all manifestations of investors’ psychology, emotions, expectations, and schemes appearing on the chart. Therefore, once you can read these, your chances of making money in FX substantially increase. In this article, I will share my views on the theme of “how to profit from the market by leveraging investor psychology.”
Table of Contents
1. Why full retracements are common in the market
2. Reading where stop orders are placed
3. Where the turning points in investor psychology occur
4. The two price-movement patterns after a full retracement
5. The growth cycle of market price movements
● Number of characters: 3579 characters (including headings)
※This article is a re-edited version of an article from FX Accelerator.com, October 2015 issue
