By Kelly Price
If you look at a chart of any currency, you will see big trends which last for weeks, months or even longer and if you learn to spot high odds chart patterns you can simply get into these trends and follow them for huge gains - Let's look at how to use Forex charts correctly and make big profits in around 30 minutes a day.
When you use charts, all you are interested in is getting into trends when the charts give you the correct set ups. You don't care about news stories or trying to work out the health of the economy and why currencies are trending - you just want to make big profits when they do.
So what sort of strategy should you use?
The first point to keep in mind is that all the best Forex trading strategies which make money are very simple and the reason why this is so is - if you try and be to clever and complicated, you will make your strategy too complicated and it will fail to make money.
So how simple is simple? In my view you only need to know the chart formations which offer high odds trading signals and then, use a few trading indicators to confirm your trades. Ideally, you should use a couple of momentum oscillators, to check that momentum of price is always on your side when trading. Two good ones to use are - the stochastic and RSI. Of course, there are many others but don't use more than two or three to confirm your trading signals.
As a chartist, always focus on trading long term trends and be patient for the right trading signals.
Many traders like to trade all the time and make lots of effort scalping the market but the problem is there trading lows odds trades and lose. The experienced chartist, will trade a few times a week at most and not only will he make more money, because he is taking high odds trades, he will also do less work and you should do this too.
Anyone can learn to read and profit from Forex charts but always keep in mind that you must cut losses quickly and run profits and as soon as you enter a trade place a stop to get you out the market. You also then need to have the courage to run long term trends and milk them for all there worth.
Forex charting involves spotting visual set ups and anyone can learn to do this and once you have learned technical analysis, you will have a simple and powerful method which can make you huge Forex profits in around 30 minutes a day.