Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.


Technical Analysis As A Forex Trading Strategy

Recommended Posts

In Forex trading, technical analysis is a strategy that is invaluable and together with other techniques, it can give a better prognosis. Technical analysis relies on three key principles which guide its interpretation of the market. The first of those principles states that prices embody all the information present in the market. This means that the prices are a sum total of all the opinion and news available in the market concerning a given currency. The second principle denotes the cyclic nature of prices. In other words history repeats itself and what came to be previously can recur in future. The third principle brings to the fore the fact that prices follow a trend. Technical analysts believe in price predictability and that the market normally follows a given established direction for while before breaking off.


Developing an online Forex trading strategy using the technical analysis in order for one to be able to analyze the markets easily and make money out of it with a lot of ease and minimal research has become easier with time. In the current world most processes have gone online and investors have not been left out in coming up with an online trading element. Technical analysis is the use of a number of indicators offered by the Forex market which helps you to analyze the market and be able to determine if there exists any profit making trade and also shows how and when it’s ready for one to place trade in the existing market.

There are many brokers who now incorporate the tools of technical analysis to software that enables Forex trading which help their clients in making informed decisions when they want to trade. Technical analyses have strategies that are used in the Forex market which also has indicators to which are tools used in the scouting of profitable opportunities. Here are some tools which are used in technical analysis, it has trend lines which are either diagonal or horizontal lines, it has also has Fibo Naccie which has retracement and also extension tools. It also has chart patterns and candlesticks, customized indicators and expert advisers are other customized tools it has, and also grid lines where it also has time charts which are determined hourly.

Traders need to have well set strategies that are compatible with trading ways of a Forex trader. Most methods of the analysis are to be well used for long time trade and also for scalping. Most methods also try to show when a market is due for reversal since it has tapped out. Bollnger Band System is a strategy that can be used to note some conditions a market has which can tell a seller to have an order submitted and hence will successfully bring in some cash. Traders can use this strategy and its tools to trade, be able to find a potential trade and have entry points which are right using the trading platform hence it’s like the back bone of Technical Analysis.

A trader can hear of news about a market but should first do an analysis of the market and make sure that the information is right so as to continue trading since some wired news are not true and are they are intended to rob off money from traders. In any efficient market, research shows that past prices should not be used exclusively to predict rates of exchange. When trading one should understand the long and short foreign currency positions which will help the trader get more profits and be successful in the online Forex trading business.


Share this post

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

  • Topics

  • Posts

    • $MRCY (MRCY) Mercury Computer System stock top of range breakout watch above 67.73, see also $MSFT ,analysis https://stockconsultant.com/?MRCY
    • Date : 22nd April 2019. Events to Look Out for Next Week.The shortened week starts with just one piece of news on Monday and Tuesday from the US, while Wednesday will be in focus as the UK Parliament returns from its Easter recess. US Durable Goods are out on Thursday along with the BoJ rate decision.Wednesday – 24 April 2019 CPI (AUD, GMT 01:30) – Australia’s inflation rate for Q1 is expected to have declined slightly to 1.7% y/y compared to 1.8% y/y in the final quarter of 2018. IFO (EUR, GMT 08:00) – Business climate in the largest EU country is expected to have grown marginally to 99.9 compared to 99.6 last month. Event of the week – BoC Interest Rate Decision (CAD, GMT 14:00) – At the BoC meeting, consensus expectations are that there should be no interest rate change. A sharper and more broadly based slowdown in the domestic economy, alongside a slowing in the global economy that has been more pronounced and widespread than anticipated saw the Bank state “the outlook continues to warrant a policy interest rate that is below its neutral range.” Thursday – 25 April 2019 Event of the week – Interest Rate Decision (JPY, GMT 02:00) – Among the core central banks, BoJ is firmly poised to be “low for longest”. Hence, once again BoJ is expected to keep the interest rate as it is, given that it appears to have finally had an impact on the Japanese economy. Durable Goods (USD, GMT 12:30) – March durable goods orders are expected to rise 0.2%, following a 1.6% February decline. Shipments expected to fall 1.5% in March, after a 0.2% reading in February. Tokyo CPI and Production Data (JPY, GMT 23:30) – The country’s main leading indicator of inflation is expected to have remained at 1.1% y/y in April. Industrial Production is expected to have improved, growing by 0.6% m/m in March, compared to -1.1% m/m in February, while Retail Sales are expected to have increased by 1.2% y/y, compared to 0.6% in March. Friday – 26 April 2019 US Gross Domestic Product (USD, GMT 12:30) – The economy’s most important figure, Q1 GDP is expected to rise 2.6%, following a 2.2% pace in Q4 and 3.4% growth in Q3. Always trade with strict risk management. Your capital is the single most important aspect of your trading business.Please note that times displayed based on local time zone and are from time of writing this report.Click HERE to access the full HotForex Economic calendar.Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!Click HERE to READ more Market news. Andria Pichidi Market Analyst HotForex Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Hello, newbie. hope you are doing well. So what are your interests? Forex or Stock market? Are you trader?
    • I think " Follow a disciplined investment approach " this is also good point which every trader should consider for their trading.
    • what is automatized signals?  im just searching for providers cus im new to the signal scene.  recently joined a provider called fxsignalpremier for free signals. but do you know more?
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.