Speculate

Learn forex and stocks trading.Forex brokers reviews.

Trading made simple

Top Forex Tips Regarding Forex Technical Analysis

July 5, 2014 by Igor

Foreign Exchange market traders need to know how to use technical analysis correctly and accurately in order to make a profit from their trades. Based upon data created from historical prices, foreign exchange traders need to be able to interpret their technical analysis in order to effectively use this information. Use the following six tips in order to manage your technical analysis more effectively.
1. Make sure that your data is valid for your purposes. You can use foreign exchange charts but make sure that you use those charts wisely. It would not be a good idea to try to day trade based upon the information that you get from those charts. Short term trends are unreliable and it is ineffective to try to make any profits based upon day trading alone.
2. Keep an eye on resistance and support levels. Make sure that you use charts showing both weekly and daily trends to see where resistance and support levels are. Also, check both charts to make sure that those levels coincide. If you test a support and resistance level several times in two different time frames then it is probably a valid level.
3. In order to locate and follow trends, make sure you use a time frame where the trend is clearly visible. Trends can last for years based on economic cycles, so use a weekly chart in order to see what major trends are occurring. It is easy to spot entry and exit points once you have located your trend.
4. In the foreign exchange market, major trends rarely occur from market lows. Instead, they tend to appear from market highs. It might go against your instinct to buy when the market is high but breakout trends can move higher at a very quick rate so wait for those trends to happen and then take advantage of them.
5. Stochastic and Relative Strength Index as indicators of momentum. These can allow you to predict when a currency will increase and whether or not the support and resistance levels are going to hold. If you trade based upon this momentum then you can end up with more profitable trades. You will almost certainly lose your capital if you trade without momentum.
6. Don’t trade just because you think you should. If you aren’t getting clear signals from the foreign exchange market then don’t do anything. Wait for trading opportunities and make good decisions. When you do trade, attempt to minimize your losses by making sure that you are using your stop loss and limit loss correctly.
You can make some reasonable profits as long as you follow these six easy steps.

Related posts:

  1. Perfect Forex Technical Analysis Makes Profit
  2. Why Forex Traders Use Technical Analysis ?
  3. How Perfect Forex Technical Analysis makes profit ?
  4. Technical Analysis – What is Technical Analysis in trading?
  5. How to predict forex prices using Technical analysis and fundamental analysis – Forex forecast methods
  6. How we need to trade using technical analysis
  7. Basics about the Forex Technical Analysis
  8. How to use Technical Analysis in the Stock and Forex Trading

Filed Under: Learn forex trading

Make the trade

Categories

  • Binary option (19)
    • Anyoption Review (6)
  • Bonds (7)
  • Buy facebook stock – facebook ipo price (3)
  • Chart Pattern (2)
  • Daily forex technical analysis (30)
  • Economy and politics (1)
  • Famous traders (4)
  • Forex (99)
  • Forex Affiliate program (1)
  • Forex autotrading (20)
  • Forex brokers reviews (148)
    • AAAfx Review (1)
    • Avatrade forex broker review (42)
    • AvaTrader (1)
    • Deltastock forex (2)
    • Dukascopy Review (2)
    • Easy Forex (1)
    • ETX Capital (1)
    • Exness (1)
    • Finexo Review (4)
    • Forex brokers news (77)
      • FXCM Review (11)
      • FXOpen Review (1)
      • Hotforex Review (9)
      • InstaForex Review (36)
      • Pepperstone Broker Review (1)
      • Plus500 Review (1)
    • Freshforex (1)
    • Fxpro Review (1)
    • HY Markets (1)
    • IForex trading Review (1)
    • SwissQuote Bank Review (1)
    • XM Review (1)
    • Xtrade Review (1)
    • YouTrade FX Review (1)
    • Zulutrade Review (7)
  • Forex contest (4)
  • Forex COT report (2)
  • Forex courses (5)
  • Forex education videos (1)
  • Forex Forecast prediction (12)
  • Forex Glossary (96)
  • Forex indicators (48)
  • Forex psychology tips (13)
  • Forex scalping (16)
  • Forex scam (3)
  • Forex strategy (60)
  • Forex trading platform (3)
  • Forex trading software (1)
  • Forex.com – GAIN capital (2)
  • ForexYard Review (2)
  • Fundamental analysis – world economy (73)
  • Futures (6)
  • Gold (25)
  • Hegding (4)
  • Intermediate Forex Course (39)
  • International trading (17)
  • Learn forex in basic course (101)
  • Learn forex trading (277)
  • Learn Fundamental analysis (4)
  • Learn trading (2)
  • Metatrader (7)
  • Mirror trading (13)
  • Money management (7)
  • Oil (4)
  • PAMM Investing platform (7)
  • Scalping tips (1)
  • Stocks (150)
  • Uncategorized (13)
  • Weekly forex strategy analysis (23)
Copyright - Speculatingmining 2013