| So what is the best technical analysis? There are | | | | in technology we have seen, far more traders would |
| numerous methods and theories you can use and | | | | win then they did 50 years ago - but they don't. |
| here we will separate out the best technical analysis | | | | The reason for this is - simple trading systems work |
| theories and indicators which you can use for bigger | | | | best, as they have fewer elements to break and are |
| profits. | | | | more robust. |
| There are two mistakes most novice traders make | | | | The best forex technical analysis is simple and if you |
| and here they are if you want to win avoid them! | | | | want to succeed, you need to make sure your |
| Markets Move to a Scientific Theory | | | | system is simple too. |
| No they don't and its obvious why - if they did we | | | | How to Use Technical Analysis |
| would all know where prices are going in advance and | | | | Keep in mind that technical analysis has many |
| there would be no market! Markets move on | | | | advantages but it is NOT a science, it's an art. |
| uncertainty and that's a fact. | | | | Your aim is the spot and act on high odds trading |
| There are theories that claim to be scientific but are | | | | scenarios. |
| nothing of the sort and they include - The theories | | | | Forget about trying to pick market tops and bottoms |
| of W D Gann, Elliot and his Wave Theory and the | | | | and trade the reality of price change only and look to |
| Fibonacci number sequence, avoid them or lose. | | | | confirm price momentum is on your side. |
| Forex trading involves trading the odds and you wont | | | | In my view, the best technical trading systems use |
| win every trade, but you can make big profits. | | | | breakout methodology. |
| The More Inputs the Better | | | | It's a fact that most major trends start and continue |
| Today, we have super fast computers and complex | | | | from new market highs. If you can lock into these |
| software programs and many traders are under the | | | | breaks and confirm them with momentum oscillators, |
| impression, that the more complicated the method | | | | you can make a lot of money. |
| and the more inputs and technical indicators they use, | | | | The next article in this series on best technical |
| the better - this is simply not true. | | | | analysis, will focus on building a simple, robust and |
| If it were, in the last 50 years with all the advances | | | | profitable long term breakout system for profit. |