Technical Forex Trading

By www.theforexnittygritty.com


World and national
events drive
currency prices up
and down.

http://www.theforexnittygritty.com/forex/technical-forex-trading


Using fundamental
analysis of Forex
pairs, traders seek to
hedge currency risk
and gain profits.


However, monetary
policy, balance of
trade, and
employment numbers
can be all over the
board.


How can a currency
trader make any money
without a crystal ball?
Technical Forex trading
is the answer for many
currency traders.


Using technical tools
as old and new as
Japanese
candlesticks, traders
read market sentiment.


The mantra of technical
Forex trading is that the
market quickly
assimilates changes in
fundamentals and
speculates on what will
come next.


By tapping into market
sentiment traders can
profit when a situation
is unclear.



Technical Forex
Trading of Major
Currencies



Technical analysis of major
Forex currencies can lead
to consistent profits.
Although major currencies
are typically not as volatile
as minor currencies, they
trade in high volume and
high liquidity.


These attributes are
positives for technical
Forex trading. A trader
can spot market
turnarounds when the
overall market seems
confused.


Using basic technical
analysis tools a trader of
major Forex currencies can
make money day in and
day out by simply
following the sense of the
market and trading
accordingly.



Technical Forex
Trading of Minor
Currencies



Technical analysis of
minor Forex currencies
is often more difficult
than with the majors.


This is because minor
currencies often trade
in low volume and are
not especially liquid.


As such technical trading
tools are less accurate.
These currencies can be
attractive because they
are often more volatile
than major currencies.


However, even technical
traders are well advised
to take a big dose of
fundamentals along with
their daily ration of
technical info in trading
these currencies.



Staying Above the
Fray



All too many day
traders treat currency
trading like a trip to
the casino.


A technical Forex
trader watches market
sentiment and does
not become part of it.


A savvy technical Forex
trader uses the
“lemmings marching to
the sea” aspect of a crazy
market and trades
accordingly and
profitably.



Seeing the Future
with Technical Forex
Trading



Despite the apparent
chaos that envelopes
Forex markets from
time to time there is
really nothing new
under the sun.


The key to technical
trading or
currencies, stocks, com
modities, etc.


is that market price
patterns repeat themselves.
By successfully reading the
first part of the pattern a
trader can be reasonably
sure that the second part
will soon follow.


This fact was noted
hundreds of years ago
by rice traders in Japan
and tulip bulb traders
in Holland.


Thus a smart Forex
trader need only know
a dozen or so technical
trading patterns, wait
for their
appearance, and trade
accordingly.


These patterns are
statistically based and
statistically significant.
If the pattern is
clear, trade it.


If the pattern is unclear
to do not assume
anything but wait for a
clear pattern.


If there are
opportunities for
technical Forex trading
jump and make a
profit. If not, go home
and save your money.

Technical Forex Trading

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Technical Forex Trading