Technical Forex Trading

By www.theforexnittygritty.com

World and

national events drive currency prices up and

down.

http://www.theforexnittygritty.com/forex/technical-forex-trading

Using

fundamental analysis of Forex pairs

, traders seek to hedge currency risk

and gain profits.http://www.theforexnittygritty.com/forex/technical-forex-trading

However, monetary policy, balance of

trade, and employment

numbers can be all over the board.

http://www.theforexnittygritty.com/forex/technical-forex-trading

How can a currency

trader make any money without a crystal ball? Technical Forex trading is the answer for many

currency traders. http://www.theforexnittygritty.com/forex/technical-forex-trading

Using technical

tools as old and new as Japanese candlesticks,

traders read market sentiment.

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The mantra of technical Forex trading is that the

market quickly assimilates changes in

fundamentals and speculates on what will

come next.http://www.theforexnittygritty.com/forex/technical-forex-trading

By tapping into

market sentiment traders can profit

when a situation is unclear.

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Technical Forex Trading of Major

Currencies

http://www.theforexnittygritty.com/forex/technical-forex-trading

Technical analysis of major Forex currencies

can lead to consistent profits. Although major

currencies are typically not as volatile as minor

currencies, they trade in high volume and high

liquidity.http://www.theforexnittygritty.com/forex/technical-forex-trading

These attributes are

positives for technical Forex trading. A trader

can spot market turnarounds when the overall market seems

confused. http://www.theforexnittygritty.com/forex/technical-forex-trading

Using basic technical

analysis tools a trader of major Forex currencies can

make money day in and day out by simply following

the sense of the market and trading accordingly.

http://www.theforexnittygritty.com/forex/technical-forex-trading

Technical Forex Trading of Minor

Currencies

http://www.theforexnittygritty.com/forex/technical-forex-trading

Technical analysis of minor Forex currencies

is often more difficult than with

the majors. http://www.theforexnittygritty.com/forex/technical-forex-trading

This is because

minor currencies often trade in low

volume and are not especially liquid.

http://www.theforexnittygritty.com/forex/technical-forex-trading

As such technical

trading tools are less accurate. These

currencies can be attractive because they are often more volatile than major currencies.

http://www.theforexnittygritty.com/forex/technical-forex-trading

However, even technical traders are well advised

to take a big dose of fundamentals along with

their daily ration of technical info in trading

these currencies.http://www.theforexnittygritty.com/forex/technical-forex-trading

Staying Above the Fray

http://www.theforexnittygritty.com/forex/technical-forex-trading

All too many day traders treat

currency trading like a trip to the casino.

http://www.theforexnittygritty.com/forex/technical-forex-trading

A technical Forex trader watches

market sentiment and does not

become part of it. http://www.theforexnittygritty.com/forex/technical-forex-trading

A savvy technical Forex

trader uses the “lemmings marching to

the sea” aspect of a crazy market and trades

accordingly and profitably.

http://www.theforexnittygritty.com/forex/technical-forex-trading

Seeing the Future with Technical Forex Trading

http://www.theforexnittygritty.com/forex/technical-forex-trading

Despite the apparent chaos that envelopes Forex markets from time to time there is really nothing new

under the sun.http://www.theforexnittygritty.com/forex/technical-forex-trading

The key to technical trading or

currencies, stocks, commodities, etc.

http://www.theforexnittygritty.com/forex/technical-forex-trading

is that market price

patterns repeat themselves. By successfully reading the first part of the

pattern a trader can be reasonably sure that the

second part will soon follow.

http://www.theforexnittygritty.com/forex/technical-forex-trading

This fact was noted hundreds of years ago by rice traders in Japan and tulip

bulb traders in Holland.

http://www.theforexnittygritty.com/forex/technical-forex-trading

Thus a smart Forex

trader need only know a dozen or so technical trading patterns, wait for their appearance, and trade accordingly.

http://www.theforexnittygritty.com/forex/technical-forex-trading

These patterns are statistically based and statistically significant. If the pattern is clear,

trade it. http://www.theforexnittygritty.com/forex/technical-forex-trading

If the pattern is

unclear to do not assume anything

but wait for a clear pattern.

http://www.theforexnittygritty.com/forex/technical-forex-trading

If there are

opportunities for technical Forex trading

jump and make a profit. If not, go home and save your money.

http://www.theforexnittygritty.com/forex/technical-forex-trading