Best Technical Analysis - The Best Methods For Big Consistent Profits

By kelly Price

So what is the best technical analysis? There are numerous methods and theories you can use and here we will separate out the best technical analysis theories and indicators which you can use for bigger profits.

There are two mistakes most novice traders make and here they are if you want to win avoid them!

Markets Move to a Scientific Theory

No they don't and its obvious why - if they did we would all know where prices are going in advance and there would be no market! Markets move on uncertainty and that's a fact.

There are theories that claim to be scientific but are nothing of the sort and they include - The theories of W D Gann, Elliot and his Wave Theory and the Fibonacci number sequence, avoid them or lose.

Forex trading involves trading the odds and you wont win every trade, but you can make big profits.

The More Inputs the Better

Today, we have super fast computers and complex software programs and many traders are under the impression, that the more complicated the method and the more inputs and technical indicators they use, the better - this is simply not true.

If it were, in the last 50 years with all the advances in technology we have seen, far more traders would win then they did 50 years ago - but they don't.

The reason for this is - simple trading systems work best, as they have fewer elements to break and are more robust.

The best forex technical analysis is simple and if you want to succeed, you need to make sure your system is simple too.

How to Use Technical Analysis

Keep in mind that technical analysis has many advantages but it is NOT a science, it's an art.

Your aim is the spot and act on high odds trading scenarios.

Forget about trying to pick market tops and bottoms and trade the reality of price change only and look to confirm price momentum is on your side.

In my view, the best technical trading systems use breakout methodology.

It's a fact that most major trends start and continue from new market highs. If you can lock into these breaks and confirm them with momentum oscillators, you can make a lot of money.

The next article in this series on best technical analysis, will focus on building a simple, robust and profitable long term breakout system for profit.

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