Observation through forex technical analysis provides the trader a degree of expectancy but no guarantee that any particular analysis will be absolutely correct. Nevertheless, the greater the degree of expectancy, the better the trader is able to predict the market with better accuracy and the higher the chances of forex trading success. However…
Trading Forex Technical Analysis is Too Time Consuming…
In order to trade these technical chart patterns from your own forex technical analysis, you need to wait at the trading screen all day for the signal alert. Analyzing and preparing charts for trading do not take much time but waiting for the signal alert will take some time, and to most people seems forever.
So what is this problem?
The problem lies in waiting for the RIGHT signal to appear. Most people become impatient and hence in a state of disillusion to trade at any slightest indication of a pre-signal.
In my case, I needed some kind of tool that could provide an objective verification (emotion-free) of the forex signals and to perform trade entry automation real quick when a genuine signal is indeed generated.
It get more complicating when there are low and high winning probability signals.
Forex Technical Analysis: Increasing Winning Percentage with Trade Filters
Trade signals developed on different times of the day (Asia, UK or US session) deliver varying degree of signal quality to the trader. Our research shows that the probability of a false breakout for Eur/USD during Asia session is higher than in UK session.
Don’t just take the above statement as a fact; it’s just our opinion towards the market. As a result, we may introduce certain trade filter like RSI or ADX and take special instructions from there in order to consider whether to trade breakout during the Asian market session.
We could also identify trading zones (RSI values between 30-70) in our RSI to determine if we will like to accept the trade signals as a genuine breakout signal. We can also incorporate mini trading rules in our RSI to allow a buy signal to become valid only if RSI value is above 50.
Or allow a sell signal to become valid if RSI value is below 50. These rules will certainly sieve out the genuine signals from many trade signals generated by your own trading system. What if we could put each of these trading processes into a workable plan and put it on full automation?
The result will be software executing your forex trading plan, executing and managing trades on your behalf, and finally you can trade all the technical chart analysis on automation even while you are away on work.
Emotion Free Trading with Forex Technical Analysis
Your emotions will not be involved throughout the trading process and the software provide objective verification and the filter you introduced will be put to work to ensure that only the high winning probability signals are taken into your forex trades.
If done right, trading forex technical analysis can capture more pips and improve trading portfolio returns than any forex gurus can ever promise you. Forex technical analysis will now be made easier with software.