There are three major types of analysis in the forex market. Those who are successful trading the forex market for a long period of time always use the major three types of analysis. However technical analysis is considered to be one of the key ingredients to identify the best possible traders in the market since allows the traders to trade the best spot.
If you look at the professional traders in Singapore then you will notice that most of them are executing high-quality trades in the market based on their technical analysis. But before you start trading with the real money make sure that you open a demo trading account with a reliable broker like Saxo and back test your system. Since you will be trading with the virtual dollar, you will have no exposure of losing real money in forex trading.
Figure: Professional trading environment provided by Saxo
Desktop vs. mobile platform: There are many new traders in the world who often executes their trades in the market just by doing the technical analysis in the mobile trading platform. If you do your technical analysis on your mobile platform then there are many simple but important things will remain unnoticed by you. For instance, every Singaporean traders always switch back to their desktop version of their trading platform when they a spot possible trading signals on their mobile platform.
This allows them to take care of all the trading parameters in the market and most of the time the false signals are easily spotted in the desktop version of the trading platform. But if you are not sure about the signal then use your forex trading account and assess the trade output so that in future you can take the correct trading decision.
Use the higher time frame: Most of the novice traders in the forex market lose money in forex trading since they use the smaller time frame in the market. If you trade the smaller time frame in the market then it’s true that you will have many trading signals but the quality of the trade setups will not be great. You can also find it by yourself by doing an experiment in your demo trading account. If you do the experience on the smaller and higher time frame then you will see that most of the technical analysis done on the higher time frame was accurate.
Basic candlestick pattern: Candlestick pattern is one of the easiest ways to identify the market next movement. Most of the traders in Singapore is pretty much successful in forex trading and making a decent income just by using the basic candlestick pattern at the key support and resistance level.
So when you find a possible trading signal in the market look for the price action confirmation candlestick pattern since it’s a great way to filter the high-quality traders in the market. If you are new in price action trading strategy then you should look for the reliable candlestick pattern in the market.
Summary: Learn the art of technical analysis is completing more than 50 percent of your journey in your trading career. Most of the professional traders in the forex market executes high-quality trades in the market based on their technical analysis. But it’s true that in order to develop a balanced trading system you also need the fundamental and sentiment analysis skills in the market. But if you learn the technical analysis skills properly then you will automatically develop strong skills on the other two sets of analysis in the forex market.