Technical Analysis Trader

We might say, all rich traders use technical analysis, but not all analyses technical traders are rich TA Is the most accurate trading on the forex market. It is worth noting also that the fundamental play their role in indicating whether a price move up or down. It gives you an advantage over other operators.

Technical analysis is so powerful because of some reasons

1) it represents numbers. All information and its impact on the market and traders are represented in the price of a currency.
2) It helps predict trends in the foreign exchange market is very trendy.
3) Some models of maps are consistent, reliable and recurrent. TA helps us see them.

Here's one way to put into perspective the technical analsysis (wish I had a dollar for every time I said "technical analysis"). We all know that prices move in trends. Research has shown that those who trade "on trend" substantially improve their chances of making a profitable trade.

Trends to help you become aware of the general direction of the market and, often, we save less profitable as entry points. I attended a 2-day courses cost me over $ 2500 AUD and the biggest thing I learned from it was the need for discipline and emotional control. The content is so basic that in the next 3 or 4 sections, I would have covered the total. So learning tools of the trade 'technical indicators and their applications will help you to diagnose what the market is doing, but even then, one should expect ups and downs and exchanges with emotional control.

Stay with the trend to follow prices.

Find the price of the currency pair. If the EUR / USD is 1.4224 and 1.4180, and 1.4090 then moves the market is in a downward trend. You only concern with what the market IS not doing what it could do. Listen to the markets and indicators of safeguarding what they are telling you.

Moving averages.

You say the price at any given time during a period intervals. Ils sont appelés parce qu'ils se déplacent vous donner le dernier prix alors que le calcul de la moyenne basée sur la mesure du temps choisi.

They shift in the market to give you an indication of a change in trend, a decline in the use of these average 5 or as a moving average to 10 days. By combining a short and long term, MA, you can detect a buy signal when the shorter term moving average crosses the longer term in the direction upwards. Or a sell signal if it crosses on the decline. For example, you could use a 5 days compared to a moving average of 20 days or 40 days compared to a moving average of 200 days.

There are simple linearly weighted moving averages, which gives more weight to the recent weighted price or exponentially. The latter is a favorite because it takes into account all prices in a period of time, but stresses the importance of the latest price trends.

MACD

Based on moving averages, MACD plots the difference between an exponential moving average 26 and 12 day exponential moving average, with an increase of 9 days used as a trigger line. If a MACD turns positive when the market is still in free fall, it could be a strong signal to buy. The reverse also works.

Bollinger Bands (sounds like an elastic band)

Prices tend to stay between the upper and lower bands. They grow and become closer as a function of market volatility at the time. A sell signal is when the moving average is above the Bollinger bands and vice versa for a buy signal. Some traders use with RSI, MACD, ITC and rate of change.

The Fibonacci retracement

Describe the cycles found in nature and when applied to the technical analysis can identify changes in market trends. After a rise in prices often retrace much, sometimes all of the original move. Levels of support and resistance often occur near the Fibonacci retracement.

RSI

Relative Strength Index measures the market activity to see if it is overbought or oversold. This is a leading indicator of how can indicate what the market will do (awesome!). Ahigher number indicates overbought RSI (therefore expect a decline in the post) and a lower number indicates oversold.

Successful traders tend to use 3 or 4 signals to provide a signal more conculsive before entering a trade.

Always remember, "When in doubt, stay out." Technical analysis does not take into account the political, economic profile of the country or the supply and demand fundamental.

Technical Analysis helps us understand how much money to risk on a trade. How and when to enter the market and how to leave the trade for profit or to minimize the loss.