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Forex analysis

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http://www.henryliuforex.com
If you are looking for information on economic news and currency market forex, look no further, because you’ve found it! You’ll not only find money making trade plans and analysis on upcoming economic news, but also videos from actual trades taken live during these news releases based on the same trade plans, all for free!

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Forex analysis

  1. 1. Forex Analysis - Basic Charting For Success<br />Success in the markets depends on accurate Forex analysis. It may be tempting to simply look at the markets daily moves and try to profit from them. A trader may get lucky every once in a while but that is no way to make consistent profits. A long term, methodical approach will ultimately lead to more profitable trades. This broader view along with discipline is key to long term trading. <br />A winning trading strategy must be grounded on sound forex trading basics. Having a systematic approach in your forex analysis gives you consistent data that you can look at in a glance. This type of system instills confidence in the trader and his or her trades as it removes the emotional aspect involved in trading and money in general.<br />Forex Analysis - Basic Charting For Success ( Courtesy of HenryLiuForex.com )<br />
  2. 2. Forex Analysis - Basic Charting For Success<br />Basic Forex analysis begins with charting moves on a graph and connecting specific points to create trend lines. These lines can show uptrends or downtrends in any given market. These visual clues are helpful in giving the trader insight. They can also serve as a 'second opinion' or confirmation of results from more technical analysis. <br />The 3 trend line method connects points of extreme highs or lows to form the trend lines. Each trend line represents movement in specific time intervals as follows:<br />Short term trend lines will be created in only 15 to 30 minute time frames. It connects the most recent highs and lows of the market. This chart should not be used to base trading decisions on but it does give you picture of the market. <br />Forex Analysis - Basic Charting For Success ( Courtesy of HenryLiuForex.com )<br />
  3. 3. Forex Analysis - Basic Charting For Success<br />Medium term trend lines are created at 60 minute intervals again showing recent high or low movements. Again, basing trading moves on this short term data is not advised.<br />Long term trend lines take a much larger look at market trends. Showing price moves in 4 hour intervals this trends chart is a much more reliable tool for Forex analysis and is a generally accepted in the trading community as reliable information. <br />These charts form what is known as a daily charts and can used together to see longer term market movements. As well as showing trend lines these charts can also be used to draw Fibonacci retracement, daily pivot points and support and resistance points.<br />Forex Analysis - Basic Charting For Success ( Courtesy of HenryLiuForex.com )<br />
  4. 4. Forex Analysis - Basic Charting For Success<br />When first starting in Forex analysis creating such charts by hand can strengthen your technical trading skills. Using real time charts available online allows you to spend more time analyzing and less time charting. These online charts may also include other useful information such as specific markets strength and its volatility. <br />Forex trading software can take your forex analysis to the next level. These types of software can automatically include information for other trading systems. Some trading software will go as far as to tell you exactly when to initiate a trade or get out of a position. This can greatly reduce the stress when trading by eliminating the decision making of when to trade. <br />Forex Analysis - Basic Charting For Success ( Courtesy of HenryLiuForex.com )<br />
  5. 5. Forex Analysis - Basic Charting For Success<br />These systematic approaches to Forex analysis increase your chances for more successful trades. While losses are simply a part of trading and are the cost of doing business, these losses can affect your mentality making losing trades more likely. Getting emotional in trading will cost you money.<br />Forex Analysis - Basic Charting For Success ( Courtesy of HenryLiuForex.com )<br />

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