Forex Technical Analysis Ebook

You’ve been trading Forex for a month, year, two years or more. What one thing can you say for sure is true about trading, something you could bet money on and be sure to win more than you lose? Is there one thing that almost always works? One thing you know is truly valid, something that nearly never fails you?

More often than not, most traders do not know anything they can really count on. So much of what is called technical analysis in trading Forex is… rubbish. It’s true, most traders are trying to trade Forex every day with tools that everyone else uses and loses with. It’s amazing. With 95% of traders losing you would think that some of the tools would not be used anymore. If someone gave you a box of tools and told you to build a house with them and you tried over and over to build a house but you failed, eventually you would have to conclude that building a house with those tools was a lost cause.

Here is a list of tools that whether you use them alone or in combination will not make you a successful trader: Fibonacci, trend lines, support and resistance, Elliott Wave, Gann, chart patterns and even price action. Why? They are all subjective. Yes, you will occasionally see a chart pattern form, say a head-and-shoulders and it will break your way and occasionally Elliott Wave will work just like the author said it would but on a day-to-day basis, these are all going to lose you money. And worse, if you combine them, you make it worse. Forex Technical Analysis Ebook

Forex trading success is based on Momentum. The reason is simple. If you can identify where momentum is going to occur with a high incidence of success AND you have an equal ability to know which way the trade will go AND with little draw
down, you will make money.

There is one trading indicator that does this better than all the rest yet people who use it, use it incorrectly. It is RSI, the Relative Strength Index. Now before you jump to Google and do a search on RSI you need to know that what you will find there about RSI will make you a loser. The principles for which RSI was first developed do not work. However, RSI used properly will help you find accurate trading signals called reversals which happen during high momentum times and can be traded with small (under 10% draw downs).

This is the recipe for success in Forex trading.

There is much to learn about RSI and the power it has to signal trades. A good place to start is with what I call RSI PRO: The Core Principles. By visiting my website you can learn more by downloading a free eBook on Forex, signing up for my daily newsletter on the RSI method of trading and reading RSI PRO: The Core Principles. Forex Technical Analysis Ebook