Forex Technical Analysis

Forex Technical Analysis

Forex Technical Analysis

If you use Forex technical analysis, you will have a time efficient, simple to learn method which can make triple digit profits in around 30 minutes a day. Let’s look at how you can win with a Forex trading method the pro traders use.

Before we look at how to win, lets look at the logic upon which technical analysis is based.

Forex prices are determined by traders and human nature is constant, therefore, you can trade the fundamentals and the emotions of the traders – we all have the same facts to look at and we all have different opinions. human behaviour is constant, therefore, the chart patterns that do repeat are easy to spot and learn and your Forex trading system can be developed to make money. So you can get the odds in your favor and that means big long term profits.

A graphic example of using Forex technical analysis is the recent euro rise which took place in 2003 and many traders who used the chart formations of this rise have made millions in profits. So if technical analysis and the charts, can work for you then this method of trading can be very profitable.

You can win with Forex technical analysis in many different ways and we have written on this frequently and it is up to you to find a method that suits you.

A great method which makes money is to use a breakout method and we have written on this frequently and covered this in our other articles so look them up. You can do the following, use breakouts and apply basic chart formations and indicators like we did and now you are all set.

The easiest way to make money is to use a breakout long term trading method and a breakout system should have the following components:

Look for a level to break and prices to continue in the direction of the break. Look for a move above the breakout point, to time your trading signal. You should then have an indicator lowering your stop loss as the trend develops – just above the point that has broken.

With this Forex trading system and earning a triple digit income, you have everything to increase your profit potential and do the following:

Money management is the key to making money fast in Forex trading and you need to see that your losses are covered to give you an over all profit. The above trade lost heavily but any trader is going to be familiar with losing trades and just focus on making money on the winners.

When trading breakouts only trade valid breaks of chart resistance – If you are trading breakouts the odds of success are far higher because, the odds are at there best when a breakout occurs.

You have the odds on your side and with a few good quality Forex trading signals and the right mindset, you will soon be on the road to currency trading success.