When trading the Forex market increasing your chances of success requires knowledge. Acquiring this knowledge takes hard work, time to study and dedication. Compile your knowledge base without taking any shortcuts, thereby assuring a solid foundation to build upon to successfully trade the Forex market.
For example from taking the time to understand the MACD indicator (Moving Average Convergence and Divergence - detailed in this Forex Book) it was possible to identify a breakout of the GBPUSD due to a 4 hour Forex chart showing a divergence of the MACD indicator and a trend line on a candlestick chart (more about Candlestick charts in this Forex Book). When you can immediately pick up on Forex signals shown on a chart you can prepare yourself to potentially profit from these situations. MACD generally follows a chart trend but when a divergence can be seen this indicates a possible strong move - a breakout if you like. You can then act to identify possible support and resistence levels around a move north or south and also alert you to watch news results at www.forexfactory.com for possible indications as to the direction of a move.
Learning the fundamentals of Forex trading is a very important step to take and shortcuts should be avoided. Its advised to have a general understanding of all indicators, theories, thoughts on developing the mindset of a successful trader, money management, risk management etc.
What do you think?
Cheers,
Annabel
www.tradeforexfromhome.com
16 years ago
