Whilst it is undoubtedly true that fundamentals drive the markets, the technical landscape we see on our price charts provides a wealth of trading opportunity, provided you know what to look for.
It can be utterly baffling for many new traders looking at a price chart for the first time, resembling some sort of archaic video game, but given the proper tools and with enough time spent learning them, new traders can quickly develop a neat process for accessing their charts and scouting potential opportunities using some nifty technical know-how.
Read on as we run down through the five things to look for on your charts, to turn all that confusion into trade-able opportunities.
As the old market adage goes: “the trend is your friend” and so it is an absolute must that all new traders become skilled in the art of drawing trend lines. Trading with the trend is proven over time to be the most profitable approach to trading and just being able to draw trend lines on your price charts can create fantastically profitable trading opportunities.
Being able to draw trend lines on your charts allows you to immediately gauge which direction the market is heading in and so how you should look to position yourself.
Many traders struggle to draw trend lines correctly, but in our Forex Trading Course we teach you how to properly draw trend lines on all time-frames and how best to use them to your trading advantage
A very close cousin to trend lines, channels are the next piece of the technical puzzle and where trend lines will give you the direction of the market, channels give the you the range within which the trend is moving by forming an upper and lower trend line. The beauty of this, is that we now have two sets of trend lines around which we can seek trading opportunities.
Channel drawing is a little more complex than regular trendline drawing, but when done correctly can create seriously profitable opportunities. Luckily we have a whole chapter devoted to the topic in our Forex Trading Course.
3.Support & Resistance
Whilst trend lines and channels help us to gauge the direction of a trending market, it’s crucial to understand horizontal support and resistance as indeed, markets tend to be range bound far more than trending.
Support and resistance form as orders build up around certain market levels giving us horizontal trend lines per-se from which we can build fantastic trading strategies.
The ability to draw these horizontal lines is a compulsory tool for the successful trader and in our Forex Trading Course we show you exactly how to do this, whilst giving you some fantastic strategies which we ourselves use to trade.
From the Marubuzo to the Morning-star, as the roadmap to the underlying Order Book, price action is the real time heads-up on market sentiment and if understood correctly can be used without a single indicator to successfully navigate the currency markets.
Price action is a huge topic and many traders devote their entire trading lives to understanding this intricate topic, but in our Forex Trading Course we give you the cheat sheet you need to understand and start using the very best price action setups immediately.
One of the major pitfalls that new traders find themselves in, is getting bogged down in one timeframe and failing to see the bigger picture. When used correctly, multi-timeframe analysis can help traders to secure entry to much larger moves on a much tighter, low risk basis.
Learning to properly assess multiple time-frames and how to establish trading opportunities based across multi-timeframes is just one of the many topics covered within our Forex Trading Course