Making the right call of buying or selling a currency and winning; gives you the best feeling of success. In order to be able to accurately predict where the currency is heading, you will need the best forex tools at your dispense. The great thing about these tools is that they can be learned and are free. These tools consist of price action analysis, candlestick reading, and resistance lines. Although, these tools are easy to obtain and free; one does require the skills, experience, and ambitions to become a successful forex trader. In this article, I will describe the tools in more detail and explain how to use them to be become a profitable trader.
1. Price action analysis – Is the study of a currency price. The most important factor of a currency is the price that the buyers or sellers are willing to buy or sell at. There are million of traders making the market and they are going at each other; trying to successfully outweigh the other. To be able to predict the currency price you will need to be watching for important economic news, drawing resistance lines, and understanding the psychology of candlesticks; this will give you a much bigger advantage of making a profit.
2. Candlesticks – Japanese candlesticks are technical analysis of the trader’s psychology. Japanese candlesticks are a tool to be used to show you what the traders are thinking from a perspective of fear (sell) and greed (buy). The value of candlesticks to your forex trading should only be used from a technical point view not fundamental. Learning the candlestick patterns is extremely important to becoming a successful trader.
3. Resistance Lines – Is the point of price that the currency has reached and became a buying or selling point; if touched or broken. The Japanese candlesticks provide you to overall resistance lines that the currency has reached. The resistance line becomes an important psychological point of buying or selling; if touched or broken.
The success formula is… Candlesticks + Resistance Lines = Price Action Analysis
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How to Accurately Predict Intraday Forex Prices – Accurate Forex Formula
