Unlike stocks which trade in shares of real, profit earning companies, currency pairs aren’t priced based on potential profits. There are no financial statements nor company earnings guidance numbers to pore over to determine value from. The Forex is a market that trades exclusively based on technical indicators and sentiment.
One thing to understand about technical indicators is that they were developed by really smart people who sought to predict what the chart would do based on historical price action. Another thing to understand is that no technical indicator works 100% of the time. This means that sometimes a technical indicator will give you a signal expecting the market to move one direction and it moves another direction instead.
This truth often causes the new investor to add additional technical indicators to their chart in an effort to get in a little earlier, get out a little faster and make more profits.
A danger with this approach is adding too many indicators to the charts and getting confusing and conflicting results. Also, some indicators work better for shorter time periods while others work better for longer term charts. All this complexity may stop you in your tracks through the phenomenon of “paralysis by analysis.”
Smarttrader.com provides excellent charts and a number of technical indicators and training to help you make smarter trading decisions.
Here is a short list of the kinds of technical indicators you could use to help you predict with a higher degree of accuracy future market moves and the possible amplitude of those moves:
Smart Trader, Inc., provides a number of highly educational webinars which are free for you to attend as you learn about technical indicators and how you can become a better, more successful trader.
Like all good things in life, mastery requires a level of commitment, focus and practice. You don’t just decide to become a concert pianist to gain that skill. You patiently expend your energy over time working on it until you master that skill. It’s the same with everything else. And the best way to get started is to turn to an expert; leaning on their skills, experience and expertise to shorten your learning curve and reduce the cost of trying to do it on your own.
Use the tools and education provided by Smart Trader, Inc., to help you make sense of the complexity of the markets and the number of technical indicators developed to predict future movement and become a better trader.