Charting Systems and Indicators
Forex Charting Systems
There are many charting systems available to forex traders. Forexearlywarning provides traders with a basic chart system setup using the Metatrader charting platform to get you started, along with the simple trend indicators. These charts are live streaming charts with built in price alerts. Over time as you progress to an intermediate or advanced trader, you may possibly switch charting systems, but the basic moving average setup will remain the same, regardless of the charting platform you use. More detailed information about charting systems is available in our intermediate level course.
Currency traders almost categorically have it wrong when they set up their charts. Most traders set up a demo or live trading account then proceed to set up their charting packages that are provided by their broker. The only problem is that they have no idea how to set up the charts, what indicators to use or why they are using them. Most new traders are fascinated with the currency market but simply do not know where to start.
The most natural thing they can do is to set up the indicators that come with the charting system they use and it just gets progressively worse from there. These charting systems are free and customizeable and it opens the door for traders to start tinkering with indicators. Some of the indicators they use are fibonnaci retracement, RSI, bollinger bands, etc. Traders seem possessed with having layers of fancy indicators on their charts that look great but unfortunately are all completely ineffective.
There is no proof whatsoever that these indicators work, and independent studies now indicate that technical indicators are useless. Traders mimic each other with all of the indicators on their computer screens, it is almost a source of pride. This is the path of almost every foreign exchange trader and it is a complete losing path which creates a cycle of failure. Trading the forex is a business and having good looking charts will not make you one single pip. You must set up your charts logically and the logic must match the logic of the forex market
If you would like a set of instructions on how to set up some simple trend indicators that are highly effective we have this for you at Forexearlywarning, and the indicators are free. Check our home page. The chart setup we provide is based on some simple bar charts and exponential moving averages, effective for market analysis and assisting with entry management, along with a price alarm system. We set the indicators up across individual currencies and use the price alert system that is built in.
Forex Chart Patterns
Chart patterns are important in fx trading. Chart formations like pennants and flags occur frequently and and validate trends and trend continuations as long as you combine this information with multiple time frame analysis of trends. The topic of fx chart patterns will be covered in detail in the intermediate level course. Chart patterns can be easily identified with simple bar charts. You can find an identify these patterns using almost any charting system available to traders.
There are over 150 technical indicators with an infinite number of combinations. These indicators have caused mass confusion among currency traders and they are completely ineffective and lack any form of logic. Forex traders need simple indicators that work, at Forexearlywarning we use very simple trend indicators.
There are several choices for trend analysis and there are several types of trend indicators available for analyzing the forex. At Forexearlywarning we use very simple exponential moving averages across multiple time frames for market analysis. By applying simple trend indicators across various time frames then conducting the analysis by individual currency we deliver superior market analysis day after day. This is how we construct our forex trading plans. Using this simpler chart setup allows a trader to view the trends of the market quickly while also seeing historical levels of support and resistance on the various time frames at a glance.
Multiple Time Frame Analysis
Multiple time frame analysis of trends is not well understood by forex traders. However it is very thorough and when applied to 28 currency pairs and by individual currency it is a powerful weapon for forex market analysis. MTFA reveals everything about any currency pair, ie. trends, oscillations, consolidations, choppiness. This is the analytical technique we use at Forexearlywarning to prepare our trading plans. We also teach our subscribers how to conduct MTFA. The intermediate level forex course contains detailed information on MTFA. Set up our basic indicators and get started with analysis of pairs today.