Deciding when to enter a buy or sell is one of the most crucial components of Forex trading. Enter in at the right time and you could close out, same day, with thousands in your account. Enter in at the wrong time and you could be down hundreds to thousands of pips in a few short hours. We found this to be especially true for new traders, or traders who are trying to adopt a different strategy.
It’s true that the Forex market moves in waves, but it can often be unpredictable thanks to fundamental announcements and socio-economic politics. In a world where news comes faster than a delivery pizza, the perfect entry point you predicted yesterday, may not be the perfect entry point today. That’s why it’s so important to find the right strategies and tools to help you stay on top of these market movements. One of the most recent trends adopted by professional investors and independent traders alike, is utilizing a market scanner.
Market scanners analyze market trends of the past and present in order to determine the future, but this is far from mystics and crystal balls. Forex scanners use Proprietary Algorithms to pinpoint trends, patterns, retracement levels and more to determine optimal market opportunities as accurately as possibly.
There are three main components to look at when choosing a market scanner:
- Easy to interpret plans of action
- Compatibility with various brokerage platforms
Scanners are a great way for you to identify which pairs have a high winning percentage before you even start your technical analysis, allowing you to cut out a lot of time and market noise when it comes to choosing your trades. Of course, once you select your trades, it’s important to conduct your own technical analysis and have a excellent understanding of how the market moves in order to confirm the pre-buy or sell as determined by the scanner.