Forex Technical Analysis – How To Plan Your Forex Technical Analysis To Improve YOur Trading Accuracy
April 19, 2009 by Kelvin
Filed under Forex Strategies
There are more and more traders using forex technical analysis as their main trading tools. This is because forex technical analysis allows the trader to observe repetitive price action so that they can trade these signals.
However, there are so many different ways you can do your technical analysis for your trades and not all ways are profitable. I have often heard new traders grumbling about how the market move against them and then move in their predicted direction after they got stopped out or there are some who take profit too early finding the price moving further in their direction.
These are usually situation where you did not do a thorough forex technical analysis before you trade. SO how can you use forex technical analysis tools to improve your trading accuracy.
Here are some tips for you
1) First of all, you need to have a selected group of forex indicators you want to use for your trading plan. Then you use these indicators to give you an idea when to enter a trade. Example: You can go long if the stochastic is oversold or you can go short if the stochastic is overbought. With a combination of these forex indicators, you will be able to have an optimum entry position
2) Next, you need use pivot point or Fibonacci to help you find a proper exit point. This can prevent you from taking your profit too early and later find the price moving in your direction further.
3) The third things you need is to find the latest support or resistance so that you can place your stop loss there. If the stop loss is too much for your account to take, you should skip that trade and wait for another setup. Sometime, no trade is a good trade.
4) Lastly, you should use your candle pattern to do your price projection which will further confirm where you should place your limit to take profit.
One of the best place to learn how to do proper price projection is forexmentor or the book “The New Science of Technical Analysis” by Tom Demark. You should spend sometime to learn about them. Forex technical analysis has been able to make me consistent profit and I believe that you can also do it too.
If you are interested to learn more about forex technical analysis, you can take a look at the forex mentor course
Forex Course I Personally Use & Recommend
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