Most people do not know that there are more than 100 technical indicators that one can use to trade forex. Available charting software programs and packages provide all these indicators but fail to provide an answer to the most vital question: which one should you use.
Let us first understand what technical indicators are all about. These reflect the behavior of the markets at any given point of time. The key to profit from these indicators lies in understanding only a few out of the many that complement each other and to use them in a typical manner in conjunction with other trading tactics.
Most of the trading methods tell you the technical indicators they used earlier for distinguishing potential trades. However, the fundamental idea behind any trading method should be to provide a deep understanding of their application and how to select trades based on them. The mistake that amateurs tend to make is to complicate this process of selection, leading to utter confusion. The resultant losses lead to frustration and eventually to quitting.
Success in forex trading does not necessarily come from complex methods. In forex trade there no bigger truth than ‘the simpler the better’.
1.Too many and wrong indicators should be avoided. They are counterproductive as the information they provide is contrary to logic and simply misleading.
2.Few simple indicators, used in a powerful way, provide the right information for initiating better trades.
3.You are likely to be more disciplined with the right indicators and patterns as they provide an objective set of rules.
The long and short of technical indicators is simplicity and using a smaller set of indicators to identify potential trades. The simpler the method is, the easier it is to select profitable trades.
Mr. Bill Poulos is an expert in forex trade. He has designed a teaching course, the Forex profit accelerator course. You, as a beginner, would be needing help during your forex trades and can use his course to your advantage and make instant profits.
About The Author
By Jonathan Harr, an avid investor. Providing resources, strategies, and tips for forex traders. See what others are saying about Bill Poulos from Profits Run at
http://onlinestocktradingreviews.com/review/index2.php?item_id=61
Check out forex strategies, tips, and videos at http://www.ForexVideoTips.com
Posted by
Jack
on
Thursday, August 6, 2009
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