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Wednesday, January 13, 2010

Generate Trading Signals

In order to generate trading signals we have to be able to look at the price movement from a professional forex trader's point of view. Potential forex investors would have to have knowledge how the above forex trading signals patterns form on the chart. You will have to study price behavior before you can make any decision about using trading signals in live trading.Do not trade a live account if you are not sure what you doing. Have a trading plan and stick to it.When you gain your knowledge about all trading pattern it is time to draw them on your chart.

It is a crucial thing that trend lines or triangles or channels are properly drawn on your chart in order to generate profitable trading signals. It is quite common practice especially among inexperienced traders that they would draw whatever they want to see on the trading chart. This issue gets stronger when they already open some positions with no trading plan and without following any trading rules and wish that price will come back into their favor. Well, That is least likely to happen and makes forex trading a gamble not a business.

1 comment:

  1. Chart pattenr trading is difficult, I used to use an online calculator that helps to me find a suggested potntial reversal levels, sometimes it gives me many levels but in any way it's intersting tool.
    http://chartpatternsoftware.com/PatternRecognition.aspx

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