How to Use Forex Technical Analysis Properly

A general discussion of the limitations of forex technical analysis and how to properly apply this element into your forex trading strategy.

Forex Technical analysis is solely based on a self-fulfilling prophecy.

It works better on higher time frames and there are never any guarantees, which is why it should be used in conjunction with other aspects.

Forex analysis is used to design forex trading systems and consists basically of two elements: fundamental analysis and technical analysis. 

Candlestick Analysis, The Best Forex Trading Strategies

Does the candlestick strategy deliver profitable results? They were initially utilized in Japan as far as six centuries ago to trade rice. These days, it is a well-known tool for forex traders to forecast trends and determine where the market is heading to. If you are able to perform a proper analysis of the candlestick, you would be opportune to win your trades.

Is the candle stick pattern the best forex trading strategy? Candlesticks patterns were first used in Japan six centuries ago in the Dojima rice exchange.

Economic Indicators in Fundamental Analysis

Forex or currency trading can be analyzed and traded using two methods. One is technical analysis and another is fundamental analysis. This article will focus on fundamental analysis.

Fundamental analysis refers to trading forex based on the economic and political performance of the country as these two factors generally influence the exchange rate. Fundamental traders use a variety of news and economic indicators to support their decisions in trading. The news and numerical indicators are usually announced or published by the government or experts at certain period intervals such as monthly or quarterly. With the availability of internet, these indicators are easily accessible and hence, traders are able to react to the news faster.

Importance of Fundamental Analysis in Forex Trading

Most forex traders plan their trading strategy on the basis of fundamental and technical analysis methods. Generally fundamental and technical analysis are used together in which fundamental analysis method explains the causes of market movements and technical method explain the effects. Fundamental analysis is a method which depends upon economical, political, and other factors to forecast the price of currencies in future. It mainly focuses on political changes, inflation rates, policy of exports and imports, GDP, business related law of the country and many other factors. All these factors may be causes of movements in price of currencies.

The Role of Fundamental and Technical Analysis in Forex Trading Strategies

Whenever you're dealing with the FX market it's important to have the right forex trading strategies in place. This offers a $3 trillion foreign exchange, and is considered the biggest stock exchange in the world. In order to be successful in your currency trading it will be important to utilize the proper tools.

After all, it's extremely easy to lose your money this way, especially if you don't have any forex trading strategies before you get started.

Two of the most important tools you will use are; fundamental and technical analysis. 

How to Target Triple Digit Gains in 30 Minutes a Day!

If you want to make money at Forex trading, you should use technical analysis and the reasons are - its simple to understand, it works and its very time efficient. Let's look at Forex technical analysis in more detail and how, you can get on the road to a triple digit income in around 30 minutes a day.

High odds chart patterns repeat, because human nature is constant and the emotions of greed and fear is reflected in the charts. If you look at any FX chart, you will see trends which can last for weeks or months and your aim is to lock into these trends and ride them for big profits.

Fundamental Analysis and Its Importance in Forex Trading

Fundamental analysis in forex trading provides information of the economic situation of various countries along with the statistics on how big the economic and political events of a certain country influence its currency and the market. The forex brokers keep a check on the speeches and the statements given by the economists, experts and politicians on the currency market moves.

Fundamental analysis is the answer to all the questions such as how do forex traders plan their tactics? What do FX traders do to make their currency trading plans? and many more. 

How to Use Average Daily Range to Improve Your Trades

Are you looking for a consistent technical indicator? You may want to consider using the Average Daily Range also known as ADR. When I used to do manual Forex trading analysis, I found this to be quite useful. Although with my new software, indicators like this are no longer needed.

ADR will provide you with an idea of how far a currency pair price is expected to move over a certain period of time. I found this helpful when trying to determine my exit points. You never want to leave a trade too early if it's trending well as you may miss out on a lot of Pips.

Forex Trading Analysis

Average Daily Range (ADR); or if you like ATR; the reason to have it on our chart boils down to one aspect in the market - the range. The range of a particular market over a specified period.

Take 5 trading days' range (High - Low) and find the average, that basically sums up the definition of ADR. You might see a line chart attached to an ADR indicator (e.g. in MT4) which shows the increase or decrease of volatility over time. However, it does us not much use, as price itself will reflect it. So all we need is just the number