KEEPING YOUR FOREX CHARTS CLEAN
A big killer in forex trading is trying to be the master of all indictors, at the same time. Control your Forex chart hygiene instead.
When you’re an aspiring Forex trader, mistakes are inevitable. In fact, there’s a good chance that while getting to the top of your game some errors will come along with it! But don’t worry- this is all part of learning how things work properly.
Trading mistakes will eventually lead to making better decisions next time around. The best way for beginning Forex traders can be a difficult thing at first. Just keep on practicing until we understand what works for us individually.
When new traders enter the Forex market, they may throw on all indicators they see in their trading platform. Often they research very little about a lot of systems thinking it may give them an edge or help them make a quick route to profit. But as you spend more and more time in the Forex market learning from some of the top Forex traders, you will understand in many Forex trading concepts, less is more.
Select few indicators
Trading indicators can be helpful when adding confirmation to a trade setup or direction. But knowing how many to add may create mess and confusion for some Forex traders. Some online Forex traders with trading content even go as far to say many indicators can work together to build strength in a trading setup.
We have tried and tested almost all indicators under the sun. We have found simple moving averages to be effective and using different line values can complement each other when it comes to trend directions and crossovers or early signs of trend changes. But unfortunately, we haven’t had much look trying to get RSI to work with other oversold and overbought indictors.
Adding too many of these indicators can also lead to the Forex trader taking focus away from the price action at hand. If all you can see is indicators, then you will be unable to see the overall direction and simple price movements. Just having a couple of indicators sitting behind everything and working as a final confluence right before the trade judgement is made, is a better approach to trading with any indicator.
Depending on who you’ve come across online and in the trading world, few Forex traders talk about the topic of charting cleanliness and hygiene. It is an amusing concept, but it is quite inspirational to see some Forex traders not apply very much in the way of tools to a chart and correctly identify a 6-month movement rewarding 1000+ pips.
Whilst there are many different trading systems and styles, almost all of them could benefit from a more simple and clean approach when it comes to technical analysis. If your Forex charts are messy at them moment, then consider cleaning them and removing any unnecessary indicators or maybe ones you don’t use as much. Then document the difference and see the clarity.
Journal and review
Whilst we believe very few Forex traders are journaling their work, the ones who do are many steps ahead of the game. If you don’t take anything but bad emotion from your losing trades, you are simply leaving money on the table. When managing a prop trading account, this can be the professional difference between excelling or losing the account with a termination.