If you want to get free forex technical analysis and build your own forex trading system for big long term profits then you can and this article will show you how...
There are certain basics you need to learn first, before you devise your system and besides the obvious searches, look up these key areas:
Support and resistance
This is the basis on which all successful forex trading systems are built around and generally, the more tests of the level the better and if the tests occur in spaced out time periods and far apart, they add to the validity of the level.
Breakout Methodology
When using support and resistance, look at executing your trading signals when levels break, rather than focusing on trading into ones that might hold.
The reason for this is that most major trends start from new market highs and going with these breaks can yield huge profits.
Most traders can't do this, they wait to get in at a better price but the market sails on and they never get in. It's hard to buy the break sometimes, as you miss a bit of the move - but don't worry, if it's a valid break it will continue and a great trend will develop.
Timing Your Trading Signal
When a breakout occurs you need to check price momentum and now its time to learn about momentum indicators. If prices velocity is accelerating then chances are the break will continue.
There are numerous momentum indicators - but the two we like are:
The stochastic and the RSI.
They only take half an hour each to learn, are visual indicators and are great for better market timing.
Now you need to find a free chart service and there are numerous ones on the net - so look for one which will allow you to use the above momentum indicators.
Make sure you use the weekly chart as well as the daily.
The weekly chart is a great way to see the wood from the trees and can give you targets and stop levels - then use your daily charts to time.
Be Patient!
Many traders think the more they trade the more they make but this is imply not true you need patience to wait for the high odds breakouts when you have a break do the following:
Check your momentum indicators if they are in the direction of the break go with it.
Put your stop below the breakout point
Wait for the trend to get in motion and trail your stop slowly.
You must not get it to close or you will be bumped out by normal price retracements - we like the 40 day moving average once the trend is in motion. You can also add to your positions by buying back to the 18 day average.
The system above is simple, easy to understand and robust and will get you on the side of all the major trends that yield big profits.
Keep in mind - forex trends last for weeks, months or years and you can catch a good chunk of these trends.
Many people buy forex trading systems but the free technical analysis tools and information available online, can provide you with ALL the tools you need to build a robust, profitable, forex trading strategy.
Free technical analysis online is there for you to use and if you use the enclosed article as a guide, for getting the right forex education, you can soon be on the road to currency trading success.
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