When it comes to knowing when to buy or sell a position, this is something that most new traders push it to luck. However, luck seldom work in forex trading arena as there are wild movement in price that may stop out your position before it moves in your chosen direction.

Therefore it is very important for you to know when the best time to enter a trade is and exit a trade as this can avoid the chances of you being stop out due to the movement of the price. This is exactly what happens to me when I am new to trading. I often thought of trading as either a buy or sell situation whereby I have 50% chance of winning. In fact, trading currency is not a 50-50% winning situation as there are formations of whipsaw or the price may just move sideway instead of going up or down.

It took me quite some time to know how to see buy sell signals through the chart and I am going to share with you some of them here today.

1) Candlestick Pattern: Having the ability to read candlestick patterns is extremely important in forex trading. Initially I thought that candlestick is a very basic stuff and do not put in effort to learn them and I was very wrong. The candle formation is one of the best forex buy sell signals you can get and being able to interpret them can be very helpful to your entry.

2) Forex Trend Analysis: The next important thing that you must always know is the current trend of the currency pair you are trading. Never trade against the trend unless you are a very experienced trader. Knowing the trend can help you to time your entry using indicators.

3) Forex Indicators: You definitely need the help of oscillators like Stochastic or RSI to help you enter a trade. If the trend is up, you should take the opportunity to enter a trade when the oscillator goes oversold and vice versa. Buy the dips in an uptrend and sell the rally in a downtrend.

4) Support and Resistance: This is also another important point to know when you are looking for forex buy sell signals to trade. Notice those major supports and resistance can help you to enter your trade and exit your trade.

Understanding the effects of these 4 factors can help you to find better and more profitable entry position. Do spend sometime to go through these 4 factors and see how they can help you place your trade