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The importance of reading technical charts for your Forex trading success

BY , , , , , , ,



In this video:
00:37   Having a good trading plan in place
01:57   USD has been relatively strong all week
03:25   New e-book released this week
04:19   Get the free lot size calculator from my site

In today’s video I wanted to tell you why reading the charts, the technical charts are so important to your trading success. Let me share more information with you right now.

Have a good trading plan in place for 2014

Hi again, its Andrew Mitchem here the Forex Trading Coach. Welcome back to the first video and podcast for 2014. I hope you had a fantastic Christmas and New Year’s break. Now that the markets are back into action it’s just a great time to get back into your trading again. I want to talk about technical trading shortly, but first of all now we are into the New Year and I also want to just talk about making sure that you have a good trading plan in place to start a New Year afresh. So what I mean by that is make sure you understand, number one your strategy but make sure you have a plan of when you are going to trade. What days of the week, what times of the day, what currency pairs, what types of set ups, where your profits are, where your stops are and so have a realistic goal in place and something you can focus on that is going to aid your trading heading into this year. What you don’t want to do is to get to that mid-year and then suddenly find that you are sort of randomly taking trades here and there without any real plan in place so make sure you do that right from the beginning of the year.

USD strength this week

I also want to talk about technical trading. On Friday last week we had very bad employment data of the US. The non-farm of payrolls were really bad but then heading into this week, and today being Friday so a week later, on most of the pairs what we have seen is the US actually strengthen. So it goes to show why you need to be looking at your charts. Yes it’s great to have a fundamental view in some respects but it does become an opinion whereas the charts tell you what is actually happening right now what in the market. You see so the non-farm payrolls were bad the US has being relatively strong all week.

I’ve been calling weak Australian dollar trades on Wednesday, Thursday and today, Friday and so a day before the employment data of Australia I was already calling short positions so Wednesday I was calling short positions and Thursday before the news came out or well before the news came out I was also calling short positions and the Australian unemployment figures came out really badly as well and so the Australian dollar continued to crash about a 300 pip drop from its peak but having that technical knowledge a day and a half prior to the news I was already calling looking for short positions on the Aussie dollar. In the end that came through also in the technical, the technical came through and fundamentals followed it but technical show well in advance what the outcome of the Australian employment data was likely to be.

We’ve also seen the New Zealand dollar peak at around the 0.84 level so its hit the 0.84 resistance level a touch over but it stalled at that level and currently it’s been falling and I’ve been calling short positions on the New Zealand against the US for the last couple of days and right behind me here its continuing to fall. So be really mindful there of keeping a good eye on what is happening on the charts technically.

My new E-Book has been released

Another thing I want to mention is my new e-book that’s been released. It’s been released this week and I’m releasing one chapter at a time so one chapter per week. The book is called “From Dairy Farmer to Forex Trader” and it’s my story about my Forex journey and there is some amazing information, some helpful tips and advice, things that I’ve learned over the years that can really help short cut your own learning process. So it’s going to save you a lot of money, a lot of heart ache, a lot of tears and a lot of time in terms of cutting out some of the errors and mistakes that I went through in my early days of trading so the aim is for you to eliminate those from your trading and short cut the whole learning process and get you to be a really profitable trader far quicker than those self taught traders.

Lot Calculator and Free Forex Webinars

Other things also, don’t forget to register for one of my free webinars I’ve got a free lot size calculator on my site and of course the e-book that I’ve just mentioned so lots of free information there to help you with your trading. So this is Andrew Mitchem from the Forex Trading Coach have a great weekend and have a wonderful trading week next week. Look forward to talking to you on Friday this time next week.

Bye for now.