Following these tips in demo mode will mean you are learning something helpful and passing the time without being nearly convinced to jump into a real trade when the conditions aren’t right. First it is really important to test the foreign exchange calendar. Maybe the choppy market is a reaction to something similar to contrary announcements in 2 different states. Something like that may have some bizarre effects and it’s better to leave the market alone for a few hours. Are they converging? This can mean that a breakout is coming. Check 1 other indicator before acting.
On the other hand, if the SR lines are approximately parallel? If that is so you should expect the market to turn when it reaches them. This is often a first signal for a short day trade. Use another suggestion to check for an oversold or overbought marker as a 2nd signal. Consider whether there are any other related currency pairs and if that is the case take a look at what has happened with their costs. Do they support your proposed trade? For instance, there’s usually an inverse link between EUR/USD and USD/CHF, so that when one is falling the other will rise.
It is critical to exit as fast as your profit target or stop loss fires. Forex currency trade secrets in a unsettled market are always going to involve short term trading.
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