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Wednesday, March 10, 2010

Technical Indicators In Forex Trading - Understanding Their Limitations

Forex traders often look at indicators such as Bollinger Bands, Pivot Points, MACD, Moving Averages and the such to help them determine where to enter or exit trades. Using technical indicators is fine, however many traders overemphasize their importance or just plain misunderstand them.

Many forex traders think that they can simply download an indicator and then mechanically apply it into their trading and do so profitably. This is just a plain illusion. Successful traders realize that there is a lot more to using indicators than just asking them to generate buy/sell signals or pin-point exact entry points. Technical indicators for them represent just one part of their trading strategy.


  1. Many forex traders think that they can simply by applying the rules make profit in their trading but it is not so easy, you have to analyze the market befor investing in the market.
    Forex Trading

  2. If you are a beginner in foreign exchange trading then it is essential for you to give sufficient time in learning forex trading system. What many traders do is, they become overwhelmed and start trading forex without fundamentals. They try demo account for few days and jump into the real trading market