In today forex faq, I will be talking about this question from one of our fellow traders.
Below is the question:
Which is the best way to predict forex market? Using price action like candlestick, Elliott Wave or indicator like Bollinger Band and Moving average.
I bet all of us traders are always looking for ways to predict the market movement. If we are able to predict the market with high accuracy, we will be able to make more winning trades. However there is no one tool that can predict the market movement with 100% accuracy.
So is that a way to predict the market?
Therefore what we are doing as a trader is to find ways to increase our chance of winning by improving our accuracy in predicting the market movement.
For me, I am always looking for confluence of events that will always increase my accuracy in predicting the market movement.
If I observe the formation of a head and shoulder pattern which is a sign of reversal. I will always search around for more indication that tells me that a reversal is on the way and this is what I call the confluence of event.
If I find the price hitting a major pivot resistance and it is also hitting the upper band of a bollinger band. These 3 confluence of event will then give me more confidence to enter a SHORT trade.
Therefore if you ask me whether the price action, elliot wave or indicators is better at predicting the forex market. I will say all of them are equally good but it will be best if you can get an alignment of all of them as this will definitely be a boost to your winning accuracy.
Personally, I am a fan of Fibonacci, Pivot point and candlestick patterns. I will always try to find the alignment of these indicators to help me better get an entry.
I hope that this information is useful for you and if you have anything to share, do feel free to give your comment below as it will be very valuable to other traders here in this blog.