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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.
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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.
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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! |
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Why?
Because the markets are influenced by:
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Human factors like fear and greed
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Governments with fundamental announcements
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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.
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We tested and experimented with hundreds of indicators.
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New ideas and methods were tested intensively over extended periods of time ...
It enabled us to develop our own unique way of interpreting and predicting market movements. (Please see the risk disclaimer below.)
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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:
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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 |
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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:
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how to identify the value of an indicator
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how to evaluate trading systems
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how to combine indicators so that they will not give misleading signals
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how to develop your own trading system
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our own trading systems - J-Sys and J-Sig
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and much more!
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.