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When it is green do i sell or buy in forex?

Forex trading is a complex market that involves buying and selling different currencies to make a profit. As a trader, you have to be constantly monitoring the market to determine the ideal time to buy or sell.

One of the most basic concepts in forex trading is the use of colors to indicate market trends. The colors green and red are used to indicate bullish and bearish trends, respectively. When the market is green, it means that the price is going up, and when it is red, it means that the price is going down.

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The question that arises is, when the market is green, should you sell or buy? The answer to this question is not straightforward, as there are several factors that you need to consider before making a decision.

Firstly, you need to determine the type of trader you are. Are you a scalper, a day trader, or a swing trader? Each of these types of traders has a different approach to the market, and this will determine whether you should buy or sell when the market is green.

Scalpers are traders who hold positions for a short period, usually a few seconds or minutes. They aim to make small profits from small price movements. As a scalper, you should buy when the market is green, as this indicates that the price is going up. You can then sell your position once you have made a small profit.

Day traders hold positions for a longer period, usually a few hours to a day. They aim to make larger profits from larger price movements. As a day trader, you should also buy when the market is green, but you need to be more cautious. You should wait for a confirmation of the trend before entering a trade. This means that you should wait for a few green candles to form before buying.

Swing traders hold positions for a longer period, usually several days to weeks. They aim to make even larger profits from larger price movements. As a swing trader, you should also buy when the market is green, but you need to be even more cautious. You should wait for a confirmation of the trend before entering a trade. This means that you should wait for several green candles to form before buying. You should also set a stop loss to limit your losses in case the trend reverses.

Another factor to consider when deciding whether to buy or sell when the market is green is the overall market sentiment. If the market sentiment is bullish, then you should buy when the market is green. If the market sentiment is bearish, then you should sell when the market is green.

You can determine the market sentiment by looking at the news and economic indicators. For example, if there is positive news about the economy, then the market sentiment is likely to be bullish. If there is negative news about the economy, then the market sentiment is likely to be bearish.

You should also consider the support and resistance levels when deciding whether to buy or sell when the market is green. Support levels are price levels where there is a strong demand for the currency, while resistance levels are price levels where there is a strong supply of the currency.

If the price is approaching a support level, then you should consider buying, even if the market is not green. If the price is approaching a resistance level, then you should consider selling, even if the market is green.

In conclusion, whether you should buy or sell when the market is green depends on several factors, including the type of trader you are, the market sentiment, and the support and resistance levels. As a trader, you need to be constantly monitoring the market and adapting your strategy accordingly. Remember, patience and discipline are key to success in forex trading.

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