How Important Is It?
Many traders look at the Forex history of a currency pair before making a trade. Other traders simply use the information in front of them to decide what to do. How important is the historical data of a currency pair? Here are a few things to consider about its importance.
Why It's Important
When you are thinking about getting into the market with a trade, you may be inclined to look at the historical data of a currency pair. This can give you an idea of the history of the foreign exchange market and help you decide what to do. For example, if the currency pair is close to the historical low, you may feel confident that it will be moving back up again soon, since it has never gone below that point.
In many cases, the prices in the currency market tend to repeat themselves. This means that by looking at the past, you can get an idea of what is to come in the future.
Why It's Not Important
On the other hand, maybe it's not so important. The history of a currency pair is just that...past information.
While you may see that a currency pair has never gone above a certain point, that does not necessarily mean that it will not go above that point in the future. New historical highs and lows are achieved all the time in the Forex market.
Sources of Forex Information
Instead of depending only on the history of the Forex market, you have to take a holistic approach. You have to look at Forex market news, the economic calendar, the price chart and your indicators before making a decision. While the history can be helpful, it should not get any more weight than other factors in your trading approach.
Return From Forex History to Forex Market News
Return From Forex History to Forex Trading