Forex chart analysis is an essential skill of anyone wanting to trade Forex. Even with all the Forex indicators out there created to help you read the markets, being able the read charts and spot obvious trends is still very important.
I found this video with some informative Forex chart reading education. It is a good idea to watch the video all the way through. Whenever you get access to a professional Forex trader willing to share their trading knowledge, you should listen. You will not only get an education on Forex chart reading, but also nuggets of wisdom about entries, exits and money management.
Here is the a video that does a good job of going over how to read a Forex chart and find the most obvious trend.
There is one common theme that keeps popping up in this video that I want to touch on. It is the fact that you need to learn to find the strongest trending pairs, and leave the rest alone. Without a doubt, trend trading can be very profitable, so learning Currency trading chart analysis has a lot to do with identifying the currency pairs that are trending nicely.
At one point, the trader talks about how his young son tried to read the charts and find trending pairs. As it turns out, he was excellent at finding strong trends. This happens because many traders bring too much information to their chart reading. Instead of looking for the most obvious trends, they over-analyze the markets and start to trade what they think is going to happen.
One way to fix this problem and only trade on the strongest trending currency pairs is to use a trend scanning service. The service uses a scanner to scan all currency pairs and time frames and identifies the strongest trends. To make things even better, you are then alerted with which pairs are trending and one what time frame.
In essence, all the Currency trading chart analysis is done for you. It not only scans all the Forex pairs, but all the time frames as well. Without having to think, you know which currency pairs are best to trade.
If you are using a trend trading strategy, this is very important. The first part of the equation is to identify the strong trading currencies and time frames. Once this is done, you can look for entries as your trading system dictates. Using a trend scanning service that basically does all the Forex chart reading for you not only makes you trading a lot easier by scanning all currencies and time frames for you, but avoids the human error of over-thinking your chart reading and missing opportunities.
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