So, it's time for the second part of my article. Today we'll look at some great methods of analysis of the Forex market, which give gorgeous results - about 50 to 50!
1. Analysis of candlesticks. Familiar to all traders candlestick chart has come to us from ancient Japan, it was originally used for the analysis of the rice market. In those days, and there were candlestick patterns such as "bearish engulfing", "shooting star", "hangman", "hammer", "Harami" and many others). Maybe in those days - all of these candlestick patterns work, I admit that option. Now - unfortunately not, we can only state the fact of the graph of any candlestick formations - and it will not tell us about the future behavior of prices. Candlestick chart informative, very comfortable showing us the past behavior of prices, and in the end - just look kawaii. That's all.
2. Wave analysis. Widely known as wave analysis, in which the price movement is divided into cycles, which in turn are divided into waves. All traders know people like Gann, Elliott, and others. Maybe Gann and Elliot could really earn something on their wave theories, but apart from them - it did not work more at anybody. The key problem here is that really the price movement can be divided into any number of waves, or their title any letters of the alphabet ... But you never know - where the start of wave 1 or wave A) And if you believe that you managed to correctly determine the start of the first wave - the market is already interesting at this moment, where there will be your stop-loss))
3. The trend lines. Support or resistance line. Many traders like to do drawing on the graphs of various beautiful lines - and call their trend lines, or lines of support and resistance. Indeed, looking at the price chart for any period in the past - it is clear that at this point was apparent trend is up, and the price, as it were pushed herself each time from some invisible line. Or, you can see how the price again and again rested against some invisible line, and could not break it. There is an idea - it works! This will work in the future! Forget about it. Once you decide that identified important support or resistance - the price immediately strikes them as if they had never existed. The trend lines and support and resistance lines work well in the past but not the future. In the future, they do not mean anything, they do not exist for the future.
4. Also noteworthy is the category of traders, who likes to analyze the volumes of such volumes with the CME, Chicago Mercantile Exchange, the largest stock exchange in the world. We can really see the important option levels for each month, we can see which volumes are to buy or to sell. But - we can not see the most important for us - who will be the winner? Bulls or Bears? The bears can not wait for the euro-dollar in the next month, at 1.25, and have an open interest of option to buy this month - h times the open interest to buy bulls, at the level of 1.32. And the price can go exactly to the level of 1.32, though there is much less volume) Or price can go to the level of 1.25, and waited as the bears. Who knows? Nobody. 50 to 50.
5. All of the above methods of trading as well as trading methods described in my previous article - does not mean anything, it's just an illusion.
How is it possible to trade in this market, you ask me? I am not going to say anything definitely, but all I can say - you do not need indicators, trend lines, volumes, you do not need a Fibonacci, you do not need any of that. You need a clean price chart. Admit it, that all the most complex systems analysis - give you only one thing - the probability of correct entry in the bargain - only 50 to 50. So why waste time on this nonsense? You need only look at the clean price chart. If you intraday trader - a look at it for 10-15 minutes - and you'll see where he wants to go to price, which at the moment it is more convenient to go - up or down. And get in the deal. If you are trading on daily charts - look at the price movement a couple of days or a week. What more days - bull or bear? If more bullish - buy. The bear - sell. It's simple. I say it again - when the price goes up - buy when the price goes down - sell. And always remember about money management. This is - the important thing in this market. The most important thing. Never think that "this is the perfect deal, I will open it large volume, and made big money!" The market will laugh at your perfect deal)) Open more trades on different currency pairs, but in less amount. Never use in a single trade - more than 1 percent of your trading capital. I mean - if your leverage is 1 to 100 - never, and I repeat - never one transaction should not use more than 1 percent of your margin. I know I'm repeating, it's been said before me by thousands of people - but it's really important, and this is the main rule that we should always remember, if you want to make money on the market, rather than lose them. That's all.