Today is August 31st. It is an important day for us because it is the last day of the month, and so current monthly candlestick which is August 2020 candlestick will close and the new monthly candlestick which is September 2020 candlestick will open. Last night, I recorded a video that I just uploaded to our YouTube channel.

Please watch the video carefully, and then please like it because I have explained why today is important. I have also talked about the biggest Forex trading secrets in that video. I am going to talk about the same topics here in the below article. Please don’t forget to Subscribe to Our YouTube Channel not to miss any of our videos.

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As I said, today is a very important day because it is the last day of the current month, and so the monthly candlesticks will close and the new monthly candlesticks will open. Therefore, it is an extremely important day for us, and we will analyze the monthly time frames of different markets today after 5 pm EST that the monthly candlesticks will be closed and the new ones will be opened.

The markets are really doing great. They have moved exactly as we expected. Below is EUR/USD monthly time frame. If you have been following us on Our YouTube Channel and also on this website, you know that we religiously follow this currency pair, especially on the monthly time frame because we are waiting for it to break above the downtrend resistance line you can see on the chart below.

The last candlestick you see on the chart below is the August 2020 that will be closed today at 5pm EST and the new monthly candlestick will open. Apparently, this candlestick is  going to close above the resistance line, unless during the next several hours and before this candlestick closes, EUR/USD’s market goes down and closes below the resistance line. Still we have to wait and see.

But if it closes above the resistance line we are going to have a long trade setup (buy signal) on the monthly time frame:

One of the Biggest Forex Trading Secrets

On the weekly time frame the last weekly candlestick has closed with the bullish body on a bull market. Therefore it is a strongly possible that the next candlestick also closes with a bullish body:

On the daily time frame, we have a local and a small resistance level that I don’t expect it to be broken tomorrow, but even if the current daily candlestick closes below the resistance level, the current monthly candlestick will close above the resistance line you saw above on EUR/USD monthly time chart. So let’s wait and see how it goes. We will analyze this market and also all the other markets today after 5 pm EST.

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Below is GBP/USD weekly chart. We have been following this currency pair as well. If you have been following us during the past several weeks, you know that on this time frame, we have been waiting for the resistance line to be broken (see the below chart). But, the last closed weekly candlestick has closed with a huge bullish body above the resistance line that was tested by three candlesticks before.

But the last closed weekly candlestick broke above it very strongly. Now I am hesitant to take a long position because this candlestick is too long and if I want to set my stop loss on the level that I used to, it will be a 400 pips a stop loss. Besides, there is a resistance level as well that if I enter the market now, it is only 160 pips above the current market price. So, I have to have a 400 pips stop loss and a 160 pips profit, and chances are this market goes down, as soon as it reaches the resistance level. So, I am hesitant to take this position:

Now that I talked about my hesitations in taking the above trade setup on GB{/USD weekly time frame, it is time to talk about the biggest Forex trading secrets.

What Is the Biggest Forex Trading Secret?

I have already told you that whenever that you are hesitant about taking a position or trade setup, it is a big signal itself. It means, stay away from taking the position.

So hesitation is a strong signal by itself. Although what you see on the above chart is an extremely strong buy signal and it is possible that it makes this market go up for several weeks or maybe several months or even several years, but just because the last closed weekly candlestick is huge, I am hesitant to take a long position.

If the next candlestick goes down to retest the broken resistance, then we are going to have another chance to take a long position with the tighter stop loss.

The other thing is that on the monthly time frame also (see the chart below), GBP/USD is only 200 pips below the downtrend resistance line. The downturn resistance line can be an extremely strong resistance line. We never know as long as this market hasn’t reached the line and hasn’t tested and reacted to it. We have to wait and see how this market will react to the resistance line. It is possible that it is a valid and extremely strong resistance line that prevents the price from going up for several more candlesticks.

Therefore, taking a long position with GBP/USD is a little risky now. We will have an eye on it especially on the weekly time frame to see how the last closed weekly candlestick will impact the market and whether the market is overbought to go down to retest or it will go up to test the resistance level. If it tests the resistance level and proves that the level is valid and is really working as a resistance and then it breaks above it, we will have another chance to take a long position. But I hope by that time, GBP/USD breaks above the resistance line on the monthly time frame. If so, that will be a great opportunity to take a long position:

Therefore, one of the biggest secret in Forex trading is that when you are hesitant, you should not take the position.

Let me show you another example:

Below is NZD/USD weekly time frame. We have been following this currency pair as well, and we were waiting for a resistance breakout. Again here, as you can see below, a huge candlestick formed that has made me hesitant to take a long position. The previous candlesticks proved that the resistance line that we plotted on this market was a valid resistance line and its breakout was a valid resistance breakout, and the broken resistance line is now working as a strong support. You can see that a huge and a strong long trade setup is formed above the broken resistance line which is working as a support now.

Again here, if I want to take a long position, I will have to set a 300 pips stop loss (watch the video). On the other hand, currently the market is below a small resistance level as well. So, I expect the next candlesticks to go down maybe to retest the broken resistance level. If they don’t and they go up strongly, then bad luck! This is what I can’t do anything about. All I can do is that when I feel hesitant and I think that there is something wrong, I stay away from the market. New trade setups always form. We don’t have to push ourselves to take any trade setups that we see on the charts.

So, if this market goes up sharply, that’s too bad because we are out and we can’t make profit from the movement. But this is what we never know. All we know is something that is already formed on the charts, and we have to decide based on what we see on the charts, not what we think that is going to form. So, in case of NZD/USD, I prefer to stay away from the market and wait for another chance:

A strong long-term setup is formed on the monthly time frame. I do know that this market is going to go up to reach the resistance level which is over 800 pips above the current market price. This is what I know and this market will reach this resistance level finally. But when I want to enter a market, I should be able to find a proper level to set my stop loss. If I see that my stop loss is going to be too wide, I will have to forget about the trade setup at least for now, and I wait for another chance:

I have already told you in my previous videos and article that professional traders never think about the profit that each trade setup is going to make for them. They always think about the losses and the risks that the trade setups are going to have for them. They prevent themselves from losing money. If you can do that, you will make money. So, when you see a trade setup, you shouldn’t think about the profit that you are going to make if you take that trade setup. You should think about the money that you will lose if you take that trade setup. If you do so, and if you keep your capital, and if you prevent yourself from losing money, then you will make money.

USD/CHF:

Those who have been following us, know that we have been following this currency pair since several weeks ago because we had a support level breakout on the monthly, weekly and daily time frames, and so we had a strong short trade setup. So far the short trade setup has been doing great. For those who entered the market after the daily candlestick breakout, and then several sell signals that formed below the broken support level that is working as a resistance now, they are all in huge profit, and chances are, if this market goes down and breaks below a local and a small support level on the daily chart, then it keeps on going down for several more candlesticks:

On the monthly time frame, as I have already explained in my previous videos, it is strongly possible that its market goes down and reaches the 161.80% Fibonacci level which is over 600 pips below the current market price:

Please make sure to watch all of our videos. Our previous videos have a lot of information about all of these markets and they tell you how we analyze these markets, how we plotted the support and resistance levels and lines, and how our trading system works and why we are so confident about our technical analysis, trading systems and what we are doing here.

The biggest Forex trading secrets are always revealed in our videos and articles. If you follow us consistently, you can become a consistently profitable trader: Become a Profitable Forex Trader in 5 Easy Steps