Online Forex Trading

The forex trading is generally done using fundamental analysis or technical analysis or combination of both. For short term trading (day trading, swing trading) technical analysis is the best. My trading style is to use below mentioned indicators -

1. Support and resistance levels - In Online forex trading support and resistance areas tell key areas from where the market direction generally reverses. The more number of times the market reverses from that point, the more stronger that area is. So, definitly if the resistance and support area is broken, the market continues going in that direction.

2. MACD - Moving Average Convergance & Divergance in online forex trading tells the momentem of the moving averages with respective to each other. When lets say that market is making higher highs, but MACD is not, that suggests that the market is losing its steam and may move in other direction.

3. Candlesticks - These are the units that indicate what markets may do next. As I mentioned in earlier post, there are books and books written on Candlesticks and its patterns.

4. Double bottom and double top - A variation ofsupport and resistance level. Generally when a market tests a support/resistance area twice, if it cannot break that area, it moves in the opposite direction. So generally when a double top/bottom are formed, its a good time to enter a trade.