There are plenty of forex traders out there could use some help with their forex trading and trading plan.After Dealing with over 100 Students every month, I have come the conclusion that just about every aspiring trader attempts to make trading more difficult than it has to be, they are basically “chasing their tale into eventual failure”. Most of the time, the simple stuff is overlooked, for example : remember the text book material you once read on basic technical analysis techniques ? Truthfuly, how much of that do you actually remember and use in your trading? How much study and testing did you actualy put into it? I rest my case, that simple trading methods are widely overlooked in forex trading.
For starters, you should always know where the major directional trend is, and whilst that may actually sound rather obvious, as I said, it’s quite interesting just how many fx traders don’t even look at the larger picture trends on the price charts.
If you are one of those kind of traders who aren’t sure of how to trade with the trend, I’ll give you a little hint: It’s a lot easier to spot when you don’t use indicators, honestly, Indicators are USELESS! there is of course a simple way to find theshort term direcitonal forex trend, and work within it to make good trades, but you wont ever have extreme clarity using the modern day standard indicators, they are not going to give you any clear defined market edge over any other normal chart observations using price patterns.
Think of all the typical magial indicators as a kind of shortcut to the market, and we all know that shortcuts are not the way to learn trading! If you want a deep understanding of what it takes to move the market and trade with a high probability trading plan, you are going to have to dig a little deeper than all those lagging indicators and fancy trading systems, you should know that none of that is what really works in trading, there is no easy road here.
You want to be able to look at a chart the same way that most trading purists would, the same way as the hedge fund manager would. So what is the answer? … well to put it in one sentence, ‘you need ia basic bar chart or candlestick chart’
I know you may be a bit apprehensive, but if you look at it with an open mind, I think you’ll be amazed at what you see. The forex market has a natural energy. It has a natural ebb and flow that gives you strong support and resistance areas, not only that but you will soon start to see obvious reversal signals, and candlestick formations, things that are occuring over and over again with precision.
You should be aware of the fact most forex traders who have used modern day technical analysis relied solely on price action trading alone, they certainly did not use indicators like Stochastics, MACD, RSI, etc. To start having any chance of success in forex trading, you must learn to trade using price action, and of course look to surroun yourself with like minded traders and mentors who teach the price action strategies which work.
All the best and good trading.