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Trading the Reality.
While the fundamentals are important, it's very hard to judge their impact and how the participants view them. Technical analysis in forex trading simply assumes that all fundamentals will show up quickly in price action.
The forex chartist therefore doesn't concern himself with why prices are moving - he simply trades the reality of price change and wants to make profits by locking into and holding trends when they occur. |
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Keep It Simple. The best systems in forex trading are simple and easy to understand.A complicated trading system is unlikely to be successful.Why? Because if you make it to simple there will be too many elements to break.
Be Objective.Ignore subjective tools and make your system rule based this means that you will stay objective and hold your discipline. Most people don't fail in forex trading because they have poor methods - they fail because they have poor discipline. |
If you don't have the discipline to follow your system you have no system - period.The basis of any good forex technical trading system is built on the following
1. Using support and resistance.This lines up areas that are important in terms of the market and you can look for them either to hold or break.
2. Confirmation.You cannot predict if levels will hold or break so don't try.You need to get confirmation that they do by a clear break or an indication of a change in price direction away from the level in the opposite direction to show they hold.
For this you need to learn to use confirming leading indicators - we don't have time to go through them here, simply look up momentum oscillators in our other articles.
3. Money management.All systems need robust money management and this is not simply placing a stop - it also involves knowing when to trail it, lock in profits and also take into account the overall account equity and its protection.
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FINALLY, Forex charting is a great way to make money in forex trading, enjoy currency trading success and you should essentially think of yourself as a ships captain. Just as the ships captain uses charts to get from A to B, steer a perilous ocean and make a living you can to use them the correct way and you can make big forex profits - use them the wrong way and you will drown, its as simple as that.
Technical analysis in forex trading if used the right way can give you a life changing income in around 30 minutes a day. you can learn the basics in a few weeks so get studying and make technical analysis part of your forex education.
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