Forex trading tools

Forex trading tools

In this article, we will spend more time on the practical aspects of trading, but first of all, I will start with a funny story which happened to a colleague of mine (let’s call him Mr. A). At the early stage of his trading career, he believed that to be a successful trader he must own at least two monitors and an exceptional computer. Hence, after a couple of good months of trading, Mr. A decided to upgrade his trading tools – he got a PC with exceptional parameters plus added two 26 inch monitors. Unfortunately,forex trading tools this purchase did not impact his performance meaningfully. The conclusion is that we do not need anything special when it comes to trading, it’s all about our skill. I do believe that a 13-inch laptop is sufficient.

Obviously, this article is more about the elements of technical analysis which are necessary to start trading:

Support/resistance levels
Given that I am a swing trader, I spend a lot of time looking at support/resistance levels using different time frames (I mostly watch daily, weekly and monthly time horizons). As a forex trader, you can draw in all your pairs Watchlist these levels and just follow the price, and you drew levels, it’s one more benefit for forex trading versus stock trading, which you can remember all your pairs just in mind and make some decisions then price reach one of the levels. However, in stock trading are thousands of stocks, and you can’t remember and draw level on all charts because they are too many.

Candle patterns
In my opinion candle bars, patterns show so much information. For example, if last week close to big up bar, I won’t look for sell (short) setups. Trading only using candle patterns, not for me. However, candle bars give us valuable information, which we can use not only to enter to trade but and refrain from some trades.

Fibo levels
One of my favorite tools to look for position potential goes forward and where the price could stop or even reverses. I’m only taking attention for two five levels: 50 and 61.8. About first level 23 and next 38, I don’t look respectable to it, actually just ignore.

Simple moving average (200 days)
This indicator is on all my daily charts. For some more information, I use 100 and 50 days lines. This is only one indicator that I use. I know many indicators names, but don’t use. From my practice is lagging information that sees all.

I think that’s it. That’s simple things I use. I want to take your attention that I use it involved, trade only that has minimum three confirmations.

My main stuff I use to trade and monitor trades:

  • Mac mini computer
  • Two 24 inch monitors
  • IPad and Smartphone for monitor trades and see prices for future trades.

One thing, I don’t use a tablet or a smartphone to decide and enter to trade. It’s too small view, and it’s not comfortable to do the technical analysis. Mobile devices, but it’s not irreplaceable to monitor and sometimes close manual your trades.