|
FOREX Trading Strategies
Technical Analysis
MASTERING SHORT-TERM AND
LONG-TERM TRADING
THROUGH TECHNICAL ANALYSIS
When you look at a
forex chart the first time, it looks absolutely chaotic! It seems as if
there are no set patterns in the market and as if it is moving in a
mysterious and totally random way.

This apparent random
movement may be very confusing for the new trader and may even result in
huge losses if he tries to guess where the markets may be going and makes a
mistake with the direction and turning points of the market.
 |
The result of random trading
is clearly visible in this test
done with Tradestation
on a "random" trading system. |
People all over the
world are trying to develop ways to predict market movements in a more
certain way. They are all looking for the holy grail of trading - a way of
trading that will help them to be consistently successful.
|
I have some bad news for you:
There is no method available
that can predict the market movements
with a 100% rate of success at all
times! |
 |
Why?
Because the markets
are influenced by:
-
Human factors like
fear and greed
-
Governments with
fundamental announcements
-
Things happening in
the world – terrorism, war and others.
It is
not possible for us to predict all of these things as well as the influence
they may have on the markets
This
is where Technical Analysis is worth it's value in gold.
Technical Analysis is the art of using mathematical formulas and
patterns in the market to predict possible movements before they happen.
Fortunately you do not have to be a maths-wizzard in order to become an
expert in Technical Analysis. The computer does all the computing and
mathematics for you and will draw lines on the screen in different places.
By looking at these
lines and patterns and by learning to interpret them in certain ways you
will attempt make educated predictions on market movements.
At
Forex Masters we spend many hours since 2002 on the research and development
of our skills in Technical Analysis.
It
enabled us to develop our own unique way of interpreting and predicting
market movements. (Please see the risk disclaimer below.)
 |
The results of a tested
trading system
can be seen in this test
done with Tradestation.
Please note: Past
results are not indicative of future results |
Over
a period of time we have been able to refine our trading system resulting in
significant improvements as shown below:
|
The results of a tested and
refined trading system
can be seen in this test
done with Tradestation.
Please note: Past
results are not indicative of future results |
 |
We are not working with back-tests any more, we are now testing our ideas on
live market conditions which is much more difficult to predict than when
working with historical data!
The traders of
Capital Builder Investments are using these methods to trade forex managed
accounts.
We
teach our students these very same methods so that they will be able to make the best
of their trading.
Please note
however, that no trading system is perfect and that Forex trading involves a
substantial risk of loss
We teach our
students:
-
how to identify the
value of an indicator
-
how to evaluate
trading systems
-
how to combine
indicators so that they will not give misleading signals
-
how to develop your
own trading system
-
our own trading
systems - J-Sys and J-Sig
-
and much more!
Back to the Top
Disclaimer
Risk Disclosure:
Trading foreign exchange on margin carries a high level of risk, and may not
be suitable for all investors. The high degree of leverage can work against
you as well as for you. Before deciding to invest in foreign exchange you
should carefully consider your investment objectives, level of experience,
and risk appetite. The possibility exists that you could sustain a loss of
some or all of your initial investment and therefore you should not invest
money that you cannot afford to lose. You should be aware of all the risks
associated with foreign exchange trading, and seek advice from an
independent financial advisor if you have any doubts.
|