When people design their forex system they are told that the forex market can only go in any of three directions: up, down or sideways, and to therefore design their system incorporating this as their foundation.
Unfortunately this is not the core foundation behind how the markets operate.
And no, it is not fear and greed, panic and exuberance, the moon and the stars (etc etc) either.
The core foundation behind your forex system should be much more simpler. In fact it really only revolves around one factor, not three (up, down, sideways), or two (fear & greed). It is also a concept so simple that most people overlook it. So what is it?
CHANGE
That’s it, pure and simple.

What do you mean “change”?

You may have heard of the old joke, there are two things guaranteed in life: one is death and the other is taxes. There is another, and most people don’t see it, and that is: change. Nothing will ever be the same tomorrow, the next hour, or the next milli-milli-second. We change. The forex markets also change. Even if the price stays the same, there is one factor that never will and that is time. And that is why we are in a state of change even if everything in the currency markets stays the same.

Why sure they may exhibit similar behaviors, similar patterns, but if you design a system with a thousand indicators that in the past made 100% per year, then when the currency markets “change” your forex system will no longer operate as it once did.
You failed to incorporate change - and your bank account will soon reflect this (I know mine did a couple of times!).
Unfortunately there is no black and white answer on whether you have incorporated change into your forex system. The only help I can offer is that the forex trading systems which seem to do well over time are simple.
Think about that.

If your core foundation is to design your forex trading system around the simple concept of change, then why should your system be 1,000 lines of code with 100 different indicators (i.e. complex)??
It just doesn’t make sense.
Keep it simple. Simple is good. Simple is robust. And most of all stay flexible, but not too flexible: you need to be able to monitor change without constantly changing forex systems.

Okay, enough of all that, I'm sure by now you've understood what can happen and things to take note when trading. On this note, I'll be creating some forex tutorials as soon as time allows and we'll turn you into a forex trader in no time. :)