Last Updated on Tuesday, 28 December 2010 01:02
Written by admin
Thursday, December 9th, 2010
The Art of Technical Trading – Get an inside look at technical trading from the perspective of a master trader.
Technical trading can be complicated and difficult to master. It can also be simple and easy to profit from. So why do most traders struggle with technical analysis, while others enjoy consistent gains?
Because they don’t understand what technical charts are in the first place. Once you understand the fundamental nature of Forex charts, finding your path to profitability becomes significantly easier. Let’s clear up a major misconception right now.
While FOREX charts are indeed the history of the movement of a currency pair’s price, they are also a historical record of human emotion and human psychology applied to the financial markets. Here’s why:
Charts don’t make themselves, they are records of trades placed by people who look at the charts and make decisions about what they think is most probable to happen next. And every trader uses their own combination of indicators. Some Forex traders give special attention to the trend lines, some people use Fibonacci lines, and some use pivot points as their main indicator. These are just three examples, obviously there are many more indicators than just these, and it is true that some indicators are significantly better than others.
But more importantly, you must recognize this concept: if you take 3 typical traders, give them the exact same chart, you will come up with three different opinions about what is going to happen next. Multiply this times millions, and you can see how a chart is a record of the prevailing collective opinion of what a currency is going to do next. And therein lies the key to help you master the art of technical trading.
Once you understand that human psychology is at play, you are best served by using an indicator that factors in human psychology. Does such an indicator exist. Yes. And our goal is to help you understand it.
Remember, mankind doesn’t exist in a vacuum. We are part of a much larger natural system, and if there are patterns that appear in nature on a frequent basis, they will by definition show up in human behaviors too, because we are part of that system. If this sounds to you like the basis of Fibonacci sequence, you’d be right, but there is much more to the story.
The Fibonacci sequence is one aspect of a broader spectrum of naturally occurring patterns – patterns that show up in natural objects such as flowers and seashells, but that also appear in every technical chart ever created in any market, whether it be stocks, commodities, or currencies. Let’s put it this way – if humans are involved in the trading of it, these patterns will emerge. Knowing this, you can position yourself to profit immensely by understanding these naturally occurring patterns.
We discovered an indicator based on these naturally occurring patterns, and we are making it available to the general public at no cost, along with training videos that explain these concepts much further. Because these nature-based patterns influence human behavior (and always will), this indicator trumps all other indicators. If you want to master the art of technical trading in the shortest amount of time possible, then you are strongly encouraged to get more information by watching this brief video.
Free Elemental Trader Software
