Why Technical Analysis Works Well In The Forex Market

Why Technical Analysis Works Well In The Forex Market

If you are thinking about currency trading in the Forex market, or you are already associated with Forex currency trading, here’s a lucrative lesson that we can borrow from investors who make use of technical analysis to help them make financial investment choices in the stock exchange.

The goal of carrying out technical analysis when currency trading is to anticipate successful currency pair motions by evaluating cost patterns. The principles of technical analysis in the equity markets are the very same as those in the Forex currency trading markets. In fact, the only genuine difference in between the 2 is that the Forex market is open 24 Hr a day while the equity markets are not.

This suggests that specific analytics that take time periods in factor to consider will need to be changed for Forex currency trading. Other than that, any of these typical kinds of equity technical analysis approaches can be made use of when currency trading:

Elliott Waves– Developed by Ralph Nelson Elliott, this approach is based upon the theory that market performance can be predicted by studying wave patterns that develop over an amount of time.

Fibonacci Studies– Established by 12th century mathematician Leonardo Fibonacci, this method is based upon the theory that alters in patterns can be forecasted based upon costs connecting with lines based upon specific sequences of numbers.

Parabolic SAR– Developed by J. Wells Wilder, this approach is based upon the assessment of rates in contrast to “stop and reversal” (SAR) numbers that show entry and exit points for a trade.

Pivot Points– A mathematical formula used to determine when to exit a trade based upon the mathematical average of the high, low and closing rates.

As I discussed previously in this short article, the key distinction in between technical analysis in the equities market, and technical analysis in the Forex currency trading market, is that it is possible to take part in Forex trading 24 Hr a day, seven days a week. That key distinction is also the main factor that technical analysis works so well in currency trading.

In order for technical analysis strategies to provide maximum results, there requires to be extended periods of time available for patterns to develop and repeat. Because the Forex market never ever closes, and currency pairs are traded around the clock, definable patterns establish faster and the technical expert has a huge selection of Forex currency trading data available to work with.

Due to the fact that more information suggests more accurate forecasting outcomes, technical experts can see better results, in quicker time, when integrating technical analysis and Forex currency trading.

Technical Analysis- Find out More About How Markets Move Click Below

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The essentials of TECHNICAL ANALYSIS & why do markets move from a psychological point of view. Likewise a breakdown of the price charts and how sometimes the most basic trading strategies can bring the best trading opportunities.
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2:06– Technical Analysis from a Various Perspective
9:15– Breaking Down A Rate Chart
17:13– My New Trading Toy

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Akil Stokes
Chief Currency Analysis at Trade Empowered
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16 comments

  1. I read many good reviews on the net about how exactly Trabeplom System (look on google search engine) will help you earn a lot of money. Has any one tested out this popular method?

  2. As specialist, I do think Trabeplom System is actually great way to get lots of profit. Why don't you give it a chance? maybe it's going to work for you too.

  3. Thanks Akil, I now understand a bit more how the market institutions decides to move into a direction or another by grabbin the stop loss of traders and making big moves. And even something unintended big moves.

  4. Great video! I should really get that standing desk as well

  5. what trading software are you using?

  6. Thank you very much Akil! Great stuff and great work!Helps me much,appreciate!

  7. Hello Akil, if your new to this and want to start out do you recomend you start with a company that will train you but you pay a fee to start that cost 1500 plus 200 a month r that you self study and then open your own account and trade? What do you think is the best for  a person that has no experience at doing this but wants to start out? You have some great videos the ones I have watched, thank you

  8. Great video as always.  I really enjoy watching your stuff, just like Jason you are an awesome teacher who manage to keep it interesting through out every single video.  Just wanted to comment on your new desk.  It is great to stand up and work, it is also great to sit down and work.   It´s a standard feature in all Swedish offices to have a desk that one can raise, and lower electronically.  It’s great to sit down for an hour, and then raise the desk and stand up for an hour.  I am working on a feature to automatically raise and lower my desk according to a schedule. We also have special stand-up chairs, special balance boards to stand on and the whole nine yards…
    Thanks for doing what you do!
    Oppppsss, time to stand up 

  9. Hi, was wondering if anybody could help me with this question. Are there currency pairs that are trending the majority of the time and others that are relatively permanently volatile?

     The reason I ask is because I think I have a strategy that can take advantage of either a trending or a volatile market, the only problem is I have to pick the right strategy and I don't know if there are any pairs that behave in 1 of those 2 ways most of the time or all pairs behave in both ways regularly over the longrun.
    My strategy basically won't work if the latter is true as I won't know which strategy I need and when I need it. Hope that makes sense as I'm still a newbie at this stuff.

  10. Hello Akil, Great video as usual. Really liked the example of the NZDUSA,  it was a perfect ascending triangle evident of an upward break. I do think that the pull back is a product of buyer absorption and then a continuation.

  11. Hi Akil Thanks for your videos I really like to watch not because i have a fun but because I learn something from every video Akil give me please favor Can you write what is the name of this book and who is author i can't see it perfectly Have a grate weekend

  12. appreciate commenst and view really enjoy it, as for standing thats what i do too and have been for past 6 months really keeps you more focused

  13. Hi Akil,

    Which broker and platform are u trading on? did you try trade on demo account first and then open live account? where do u get the news for trading ? I opened a demo account and got some trades there. I want to get into forex trading, do you have some tips for newbie trader like me?

    Thank you for your time and videos. It helps me a lot about trading forex

  14. do you ever do videos on the forex market for week ahead like giving indicators on what dollar to take and that sort of stuff?

  15. Great video as always 

  16. Thanks for the video Akil

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