The cyclicality of the Forex market and the pattern of fluctuations.

Most traders think that they can make money on Forex only using technical and fundamental analysis, but as practice shows, they can do without these research methods.

It is quite difficult to find a currency that has moved in only one direction during its existence; most world currencies rise or fall in price with a certain cyclicality.

Typically, the price movement of a currency pair occurs in a certain price channel, which determines the minimums and maximums of the price.

The boundaries of the price channel are determined by the state’s monetary policy and the influence of economic factors. But, for a trader, it is important not to study the factors themselves, but to determine the existing boundaries. It’s not that difficult to do, you just need to open currency pair chart with a period of a week or a month, it is a long time period that will allow you to see a more complete picture. And established cycles, as a rule, are quite long.

In this case, you should not count on a horizontal channel; the trend can also have a vertical direction.

Patterns of oscillations.

One of the main patterns of fluctuations is correction after a strong movement; this is indeed a real opportunity to make money on Forex with the least risk.

Usually, under the influence of an important event, the market moves a little further than the currency is actually worth, after which the price restores its real value.

The size of the correction is rarely less than 10% of a strong price movement; an excellent example was the fall of Bitcoin on September 14, 2017, when the price fell from 3850 to 3238 or $612 in one day.

The next day, the rate increased from 3238 to 3698 dollars per 1 bitcoin, that is, the price almost recovered.

Yes, as with any rule there can be exceptions, but the longer the candle of the time frame being studied, the higher the likelihood of correction. Simply using patterns increases the effectiveness of transactions.

You should not spend a lot of time studying technical or fundamental analysis, there are a lot of players on the stock exchange who have been successfully trading for decades, only using patterns of price behavior.