The essence of FX trading — The market moves not by orders, but by settlements

In the world of trading, many people chase the “trend.”

If you ride the trend, you can make a lot.

It can extend by hundreds of pips.

Indeed, that is true.

But there is one problem.

The trend is uncertain.

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The market does not always show a trend.

There are ranges as well.

There are false breakouts.

It can end midway.

In other words

the trend becomes a forecast.

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But the market also has something else that occurs reliably.

That is

settlement (closing of positions).

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The market moves with orders.

And there are only two kinds of orders.

・New orders

・Close orders

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Many people try to watch new orders.

But the force that actually moves the market is

the close orders.

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Profit-taking

Stop-loss

These two will inevitably occur.

Because traders will surely close their positions somewhere.

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In other words

settlement will occur for sure.

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As you continue trading,

you repeat similar trades over and over.

Among them, you gradually notice certain things.

What I noticed this time was

the idea of “without settlements.”

To be honest, at first

I thought I was good at trend-following.

Going after markets that move strongly.

I believed that was the right thing to do as a trader.

There are trades that chase the trend too.

I don’t intend to deny that.

However

it didn’t suit me.

As I repeated the same trades,

I realized something.

Most of the profits I was taking

were not from trends.

Most of them were

from settlement movements.

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So I changed my approach.

Instead of chasing the trend

I aimed to cut out settlements.

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Settlements begin near the line.

Wicks appear.

Candles reverse.

Two confirmations appear there.

I would take just 30 pips from the moment’s flow.

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There is no need to target the trend.

There is no need to take a lot.

But

only capture the certain flow of settlements.

⸻

Then the results become simple.

One time for 30 pips

If you take that a few times

you can reach 100 pips a day.

⸻

Trading is often thought to be difficult.

But the essence is simple.

⸻

Trends are uncertain.

Settlements are certain.

⸻

The market moves with settlements.

Settlement.