Using Forex charts is like being a ships captain at sea: Your charts can help you navigate successfully to port or you can hit the rocks and drown – the choice is yours.
It’s the same with forex charts 95% of users drown – Let’s look at common errors that novice traders make and how to avoid them.
1. Predicting Price
No one can predict price movement and if you do – you are simply hoping levels will hold.
Do this and you will be wiped out quickly the market wont reward you for hoping or guessing.
If you want to win, act on the reality and that means – trading with price momentum AFTER a test of the level you are looking at.
Trade with momentum on your side and you are trading a fact and your odds of success are increased dramatically.
If you don’t use momentum indicators in your forex technical analysis learn what they are quickly.