Forex technical analysis is a great way to trade currencies because its easy to learn and apply and you learn quickly, you don’t need to follow the news or know anything about the economy, you can simply follow price action and lock into trends and run them for big profits but how do you do this? Let’s take a look at Forex technical analysis in more detail.
Forex charting works because certain chart set ups repeat all the time and the reason for this is traders make the price of any currency and human nature never changes and shows up in the charts.
When putting together a Forex trading system based on charts, always keep in mind it only needs to be simple. A lot of traders put a lot of energy and work into their systems, their clever and complex and they lose. There trying to beat the market and that’s not possible and its a fact that simple Forex trading systems are best. The reason for this is they are more robust, with fewer parameters to break and more likely to give you profitable trading signals.
So how simple should your trading system be? I would recommend, you just learn high odds chart patterns and use a few confirming indicators to filter your trades. Good ones to use are the Bollinger band which measures volatility and the RSI, MACD and stochastic to time your moves. We don’t have time to cover them all here but they can all be learned in a day or two and can help you make a lot of money so look them up.
Don’t make the mistake of trading short term moves, because the odds of losing are high. Most new traders like to day trade3 or scalp and they lose – they make a lot of effort for no reward! The smart trader, learns to be patient and lock into the trends which last for many weeks or months, this trader may trade less and make less effort but he makes a lot of money.
When using charts, try and keep your emotions out of your trading and always take losses quickly. Most traders let losses run and lose – don’t make the same mistake. If the vast majority of traders disagree with you and the news is also against your view – that’s good because, the majority are always wrong so its best to be in the minority that win.
If you learn to trade with Forex charts you can make a lot of money and even better, its a skill anyone can learn quickly. If you want to make a triple digit income in around 30 minutes a day.