Forex Technical Analysis

Five best tips to make your forex technical analysis successful.

1.Trade Valid Data....

Using technical analysis on forex charts is designed to get the odds in your favor and to trade the odds you need meaningful data.

2.Use Weekly and daily charts....

Don’t just use daily charts, use the weekly chart as well to spot the major trends.

3.Understand Support and Resistance....

All successful forex traders need to understand support and resistance and want to look for valid levels. These are levels that have been tested several times (at least 3 times) and preferably in two different time frames.

4.Understand Breakout Methodology....

While support and resistance can hold they can obviously break as well and it’s a fact that many of the major trends in forex trading take place from new market highs and lows.

5.Use Momentum to your advantage....

Will support or resistance break or hold? You don’t know and you should never predict. Whenever you enter a trade your view should always be supported by price momentum. RSI-Relative Strength Index, it will help you make bigger profits.

Keep it simple... Your system should be simple... simple systems work best. 

Be patient don’t trade for the sake of trading. Only execute treading signals that your forex technical analysis system generates.