Here we will look at how to use Forex technical analysis to make big gains trading currencies. FX charting can be learned in a few weeks and can make you big profits in just 30 minutes a day so let’s take a look at how to chart our way to currency trading success.

Forex technical analysis is based on a simple formula which is

Fundamentals ( News and Supply and Demand Situation) + Investors View of = Price Action on a Chart

The Forex chartist, doesn’t look at the news because that’s not important, its the investors view of it which is and this will show up immediately in chart price action. When using charts you are not interested in the reasons behind the moves, you just want to lock into and profits from trends as they occur on a chart.

Because humans make the price of any currency and human nature never changes, high odds chart patterns which reflect trader psychology will repeat themselves time and time again. If you learn how to spot and trade the right formations, you can can of course make huge profits.

This may sound simple and it is but the reason why it’s so profitable is – when you trade price action your not trading opinions, your trading the reality as it is and can trade unemotionally, without beiung distracted by news or opinions. All currencies trend long term and you will very often see trends which last for weeks or even months, on any currency chart chart. Your aim is to lock into these trends and hold them for profit – but what strategy should you use to do this? Let’s take a look.

In general terms, your strategy should consist of just high odds chart formations and some confirming indicators. While there are a he number of indicators you can use, you should only use a few indicators because if you use to many, your strategy will have to many elements to break.

Simple strategies work best and always have and the only indicators I use are – the MACD, Bollinger Band, Stochastic and RSI. In part 2 of this article series we will look at the best chart formations and review how you can use these indicators in more detail and chart your way to a huge second income in 30 minutes a day.