Brief Primer to the Use of Technical Indicators

For traders who do not have vast capital resources, along with lacking the physical and emotional patience to engage in long-term fundamental trading, technical analysis will take precedence.

Analyzing charts, looking for recurring patterns, planning trade entry, trade management, setting profit target or maximum acceptable losses, are all facets of technical analysis that will allow a new trader to get a feel for the rise and fall of forex currency prices. This will also permit a trader to learn different trading styles and market preferences.

There are literally hundreds of technical indicators. Some are obsolete, some are new and unproven and others are yet to be developed. If as a trader, you were to attempt to first thoroughly understand every indicator that exists, you would die of old age before you ever made a trade.

Here are a few indicators that have stood up to scrutiny for years and how they are interpreted and applied:

Speculative trading in the foreign exchange currency market (forex) was once the exclusive domain of large banks, governments and multinational corporations. Read More