Some key forex market basics which really do work are the LSS pivots, divergence indicators, and swing point analysis. Entire trading strategies can be developed around these alone, without taking into account any other methodology or indicator. Unfortunately, many vendors today present the forex market as a trading online made easy product. And they promote all kinds of nonsensical indicators just to satisfy people’s superstitious and numerological beliefs. Anything from astrology to Fibonacci number theory is used to accomplice this. And of course these methods fail miserably in actual trading conditions, because markets could not possibly work that way. Superstitious people lack critical thinking and will always buy these products. Wise traders on the other hand want to see evidence, real hard evidence that an indicator performs better than a coin flip. Otherwise they might as well be tossing coins prior to making trading decisions and keep things simple. But indicators such as LSS and swing point analysis are very fundamental, and they do work. LSS pivots provide clues on momentum. And swing point analysis helps determine the real trend on the daily chart. Even the best forex trading strategy, no matter how good, can still be enhanced through LSS pivots and swing point analysis. Veteran traders have found that the few good indicators that helped them most are these basic indicators. There are also divergence indicators, and daily range analysis, which can also enhance existing trading systems. In any case, traders simply should refrain from using any new method offered to them by vendors and authors. Or any indicator which claims to offer easy success. Forex market basics are about true indicators, which provide difficult but possible profitable trading to beginners.
Important Forex Market Basics
Forex market basics also include important aspects such as volatility analysis. Volatility is hardly ever seriously taken into account, and neither is money management. These two concepts alone are conveniently avoided by many so called gurus and vendors. While the indicators and tools available on volatility are primitive and almost useless in most cases. Volatility has to be studied first, using good analysis. And then money management has to be applied based on volatility expectations. Trading online practice offers unique new insights to all new traders seriously devoted to the task of profitable trading. Traders need to focus on the reality of volatility of the forex market, first and foremost, and then on few other basic principles. Many other indicators out there claim to be based on basics, but these are basic misconceptions and basic superstitions, and not the real forex world.