Masterforex-V Know-How: How to Correct Dow’s Mistakes to Trade Forex Profitably?
Obviously, being able to conduct comprehensive and efficient analysis of market changes is one of the key abilities a contemporary winning trader should possess. Such a trader should be able to anticipate in real time what factors will influence the market and how will they do it.
Is it possible? Let’s ask experts.
New Technical Analysis by : New Trading Opportunities.
According to Andrei Krupenin, the chief of the school for beginners under , there are many approaches towards anticipating future price behavior. Some traders just guess, others rely on intuition or do some superficial analysis. However, real professionals rely on math in the form of quantitative methods of predicting future prices. They believe that market behavior can be interpreted by means of figures. Indicators and/or indices are some of the quantitative tools in their arsenal. They are often associated with technical analysis.
Indeed, technical analysis is one of the most popular methods of interpreting market behavior. Let’s have a closer look at it.
In essence, technical analysis is a method of forecasting future prices in financial markets based purely on math and graphical tendencies instead of economic tendencies (which are known as fundamental data).
At the same time, determining market tendencies includes 3 major components: price (tech analysis), trading volume (liquidity) and the correlation between buy and sell orders (open interest).
The practical use of tech analysis implies the use of several axioms:
1. The major one says that the price takes everything into account. Technical traders believe that all the possible factors (including economic stats and political events) are taken into account by the market and are reflected in price charts.
2. Another axiom says that the price follows certain tendencies or trends. All technical trading strategies are based on it.
The main rule says. “The trend is your friend”. This means that it is necessary to follow the trend in order to stay a winning trader. However, it is necessary to keep in mind that there are no straightforward trends in today’s financial markets. Any price movement develops in waves (ups and downs; momentums, retracements and recoveries)
3. History repeats itself. In terms of tech analysis, if a certain technique worked in the past it will likely work in the future as they result from human psychology (it is humans who trade financial markets, trading robots are programmed by humans as well).
One of the key elements of technical analysis is defining support and resistance levels.
Charles Dow’s Triple Screen: A Fresh Look
When traders do what they did previously they will get the same result. In order to win and to reach a new level, it is necessary to train hard and be disciplined.
Most traders are still using the old, outdated methods and techniques that no longer work for financial markets. That is why they are habitual losers. Education is one of the best investments.
Charles Dow’s Triple Screen is 3screens for contemporary traders. It is 3 approaches, 3 looks at price charts. Are they enough to dominate financial markets these days? You can learn this during one of the weekend webinars conducted by on a weekly basis at 16:00 GMT.
These webinars provide a fresh, unconventional look at Dow’s theory and help traders to learn how to read the genuine wave structure of any price move… and so much more… You are welcome to visit these webinars. For more details, please visit .
