Monday, November 19, 2007
at
7:03 AM
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If you want to get better market timing for your forex signals you need to understand price momentum and how it can get the odds in your favour. If you have not used momentum oscillators before, then its time to make them part of your forex education.
Confirmation
If you simply try and buy low sell high by selling into resistance and buying into support your making a fatal error - why?
Because you are predicting which is the same as hoping or guessing and you don't get rewarded for relying on hope in any venture, let alone forex trading.
Many novice forex traders think that to win they have to predict - but as we don't know the future, this is not going to help you make money, you simply don't have the odds on your side.
If you learn forex trading correctly, you will understand that you need to act on the reality of price, confirmed by momentum oscillators which are leading indicators and can confirm trend changes.
Let's look at the correct way to use momentum oscillators in your forex trading strategy, so you can enjoy currency trading success.
Momentum & Support and Resistance
For example, when a price gets near to support you don't just simply buy - you wait for confirmation that price velocity is turning away from the level, by using momentum oscillators.
You're not hoping or guessing - you're acting on the reality of price change.
We don't have time to go through momentum oscillators in detail here (there covered in our other articles) but two of the best are - RSI and the stochastic indicator.
Look them up - their easy to understand and use and all you need to do is watch for simple visual setups.
Confirmation
If you simply try and buy low sell high by selling into resistance and buying into support your making a fatal error - why?
Because you are predicting which is the same as hoping or guessing and you don't get rewarded for relying on hope in any venture, let alone forex trading.
Many novice forex traders think that to win they have to predict - but as we don't know the future, this is not going to help you make money, you simply don't have the odds on your side.
If you learn forex trading correctly, you will understand that you need to act on the reality of price, confirmed by momentum oscillators which are leading indicators and can confirm trend changes.
Let's look at the correct way to use momentum oscillators in your forex trading strategy, so you can enjoy currency trading success.
Momentum & Support and Resistance
For example, when a price gets near to support you don't just simply buy - you wait for confirmation that price velocity is turning away from the level, by using momentum oscillators.
You're not hoping or guessing - you're acting on the reality of price change.
We don't have time to go through momentum oscillators in detail here (there covered in our other articles) but two of the best are - RSI and the stochastic indicator.
Look them up - their easy to understand and use and all you need to do is watch for simple visual setups.
Posted by
ramana
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