Forex Signals

How many indicators do you need to generate forex signals? There are hundreds and thousands of them available with the internet based softwares. But wait there is a little problem in trading with computer generated forex trading singals- they follow exact same parameters all the time and follow the linear analysis. The markets never move linearly. They move in a zig zag fashion. They are like driving a motor car and finding a route from point A to point B. To get to point B, there can be a lot of ways, however some of the routes can be shorter than the others and some can be followed easily. You have to decide if you want to save time, gas, money or all three.

There can be three different routes serving three different purposes. Forex Signals work the same way. The most important decision you have to make is what time frame do you want to trade. In shorter time frames, a longer term moving average will not work. It will require other type of signals for trading the shorter time frames. In intermediate term time frames, you can have different type of market indicators.

In my five years of extensive research on market timing, I have come to know that the best way to analyze the market is to use own understanding of the markets. This includes volume studies, market acceleration studies and market profile. To judge where the market players stand in the particular time frame. These market players can be big banks or smaller single accounts. The market has a direction all the time and that direction is determined by the longer time frame traders.

To judge where these players are going is like sitting in a game of chess and seeing what you opponents next move is. A correct analysis of the markets come from observation and judging whether the move is going to continue or abort. If it is going to abort, is it going to reverse? Keep your analysis and Forex Signals simple and trade able. Do not over complicate them with using a lot of indicators and custom fitting them. Good luck with your trading and happy journey from point A to point B.

Adnan Kaleemi is a Registered Commodity Trading Advisor and has been advising Forex traders all over the world in more than 60 countries for the last five years. He is currently registered with the commodity and futures trading commission in the US. He reaches global forex traders where provides daily forex signals and forecasts in the major currency pairs EURUSD,GBPUSD,USDJPY and USDCHF along with money management strategies. At http://www.forexforecasting.com you will find informative articles, newsletters and other tools which will help transform your Forex Trading.