Technical Analysis of Price Action
Why Technical Analysis is Best
When it comes to learning how to read the Forex Markets you have a few choices, you can do so by using Fundamental Analysis, you can do so by using Technical Analysis, or you can do so by using a combination of the two. Your only other choice is to gamble so I will assume that since you are reading this you don’t want to do that. If you do gamble you will lose in the end and I can’t talk with any authority about Fundamental Analysis because it is not what I do. What I want to talk about in this article is why I believe that reading Price Action using Technical Analysis is best.
What is Technical Analysis?
Technical Analysis in Forex Trading is a way to read and predict price movement based on historical and current price action. All of this is done on your computer screen via your trading platform. You are analyzing nothing but the price charts and doing so using whichever software you have chosen to use. This makes it the more technical approach, you are using the latest tech and performing Technical Analysis.
Why Do I Think Technical Analysis is Best?
Deciding if Technical Analysis is the best approach for trading the Forex Markets or not is subjective. For the way my mind works, along with the skills I have developed in this life so far, Technical Analysis is the most logical and the easiest choice. I say that because effective Fundamental Analysis in Forex requires that you follow and understand all of the macro economic data of all major countries. That is just something that bores me to death and I discovered long ago the data can be misleading anyway. The truth is that Technical Analysis gives you a way to see what is actually happening and what the real reaction to any news event really is. Furthermore if you trade using Technical Analysis you don’t even have to trade around any news events and can let those battles play out before joining in once things settle. Even if you do learn Fundamental Analysis you will still need to learn how to use the trading platform of your choice, so there will always be an element of technical for you to overcome. Personally I am very comfortable with learning new software and the bottom line is that I enjoy Technical Analysis so it is by far the best for me.
What is The Best Way to Learn Technical Analysis?
I am certainly biased on the answer to this question and believe that here at ElectroFX you will find the best and most detailed techniques and training. I also provide the latest software that does most of the work for you but you. The most important thing to remember though is that there are many different ways to read price action through Technical Analysis, any website you visit must give you enough free information that you can understand the style of that mentor. If, through that free material, you feel that you can see the logic in that mentors style then it is most likely a great choice for you. My experience in the matter has shown me first hand that what works for one person is not guaranteed to work for someone else. My closing advice on helping you answer this question is; find a mentor that gives you enough free material to understand his/her trading and teaching style, make sure that you understand the logic behind why it works, and then through back testing your charts reinforce that second point and actually see it work also.
Technical Analysis to Avoid
Not all Technical Analysis is even worth your time, for example, if you ever see a chart with a bunch of squiggly lines everywhere and/or row after row of indicator windows, don’t waste your time. Everything you need for effective Technical Analysis is in the actual Price Action itself, all squiggly line and indicator windows will be lagging, and your main goal is to find and learn something simple. There are several Price Action focused Technical Analysis teachers online with nice clean simple techniques for you to master, find the one with the style that makes the most sense to you and dive in. Whatever you do though don’t flip and flop about between trading styles thinking this is a quick fix. In order to make an intelligent fact based judgement on any trading style you need to learn it properly and execute it for several months.
Technical Analysis at ElectroFX
If you wish to start your journey in to learning Technical Analysis here at ElectroFX then I invite you to first run through all of the Free material. This will help you understand my trading style and my teaching style without spending any money. Your first step would be to run through the following in this order:
1. Forex Trading Basics
2. Forex Trading Strategies
3. Free Members Video Course
If this style makes sense to you after you complete all of that then please check out what my VIP training entails on the Upgrade Your Account page. Above all, enjoy your journey in to trading using Technical Analysis, don’t get impatient, angry, afraid, stressed, or greedy. None of it helps!