Market conditions and phases

The market isn’t always the same. In order to choose the best trading strategy, you need to understand the market’s condition. There are two types of market conditions: a trend (a sustainable movement to the upside or to the downside) and a range (price fluctuations in a horizontal channel). 

It’s necessary to apply a strategy that fits the current condition of the market. If you use a trend trading strategy in a ranging market, you will likely lose money and, vice versa, if you use a range trading strategy, then you’ll lose money in trending markets. Always start your technical analysis with identifying the market’s condition, so that you could then pick an appropriate strategy.

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It’s important to understand the underlying logic of trends and ranges.  

First of all, keep in mind that the price moves as a result of supply and demand for the currencies which form a currency pair. If there are more buyers of the euro than those of the US dollar, EUR/USD will tend to rise. 

A price stays within a horizontal range when the powers of buyers and sellers are mostly equal. As usual, the market is in the situation of uncertainty: the majority of traders lack the information to join one of the camps. 

At some point, new information appears and either bulls or bears manage to break the range and start the directional movement of the price. If this movement is sustained, we get a trend. During a trend, there will definitely be periods of the so-called consolidations (i.e. ranges) and corrections (i.e. short counter-trend moves) as market participants take profit and re-adjust their positions. These shorter moves may provide opportunities for range trading on lower timeframes.   

Frequently asked questions

  • How to open an FBS account?

    Click the ‘Open account’ button on our website and proceed to the Personal Area. Before you can start trading, pass a profile verification. Confirm your email and phone number, get your ID verified. This procedure guarantees the safety of your funds and identity. Once you are done with all the checks, go to the preferred trading platform, and start trading. 

  • How to start trading?

    If you are 18+ years old, you can join FBS and begin your FX journey. To trade, you need a brokerage account and sufficient knowledge on how assets behave in the financial markets. Start with studying the basics with our free educational materials and creating an FBS account. You may want to test the environment with virtual money with a Demo account. Once you are ready, enter the real market and trade to succeed.

  • How to withdraw the money you earned with FBS?

    The procedure is very straightforward. Go to the Withdrawal page on the website or the Finances section of the FBS Personal Area and access Withdrawal. You can get the earned money via the same payment system that you used for depositing. In case you funded the account via various methods, withdraw your profit via the same methods in the ratio according to the deposited sums.

Latest news

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Bearish scenario: Sell below 2200 / 2194 ... Nearest bullish scenario: Buy above 2197... Bullish scenario after retracement: Consider buys around each indicated demand zone

CAD: Markets Await GDP Release

During the Asian session on Wednesday, the USD/CAD pair rebounded after two days of losses, reaching around 1.3590. This uptick is fueled by a stronger US dollar and lower crude oil prices, which put pressure on the Canadian dollar. The decline in Western Texas Intermediate (WTI) oil prices to approximately $80.70 is attributed to...

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