In earlier posts (January 5th, 6th, 8th) we mentioned the two types of analysis that we use to predict currency movements - Technical Analysis and Fundamental Analysis. We said that you can use either or both. However you have to remember that neither is a magic bullet. They are tools that you need to keep as part of your personal trading tool kit. For instance, we said technical analysis is one of the most reliable ways of predicting price movements, and it is. But you have to learn to use technical indicators in the context of the market.
For instance, the usual advice is : don't use technical indicators to go against a trend. Look at the prices. If the EUR/USD is at 1.3443, then goes to 1.3440, then 1.3333, then 1.3329, you can see the market is in a down trend. In this context, indicators showing what the market will do next or what it SHOULD do are of no use. You must stay with the trend. To work out the price action of a currency pair, you have to be concerned with what the market IS doing, not what it MIGHT do. Look at the prices to tell you.
Having said this, there is one Forex trading system that has a unique way of teaching you how to trade AGAINST the trend under certain circumstances - that is the 5EMAS Forex trading system. By doing this you have a great chance of making a profit - IF you do it right. Of course if you don't do it exactly right you will lose badly. So look at the 5EMAS system to find a great way of trading Forex and getting one up on your competition!
And there is lots more to learn at http://www.bizwrite.co.uk/Forex/forexindex.html
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