Can You Successfully Predict Forex and Gain the Forex Edge? A Nobel-prize winner once said, "Prediction is very difficult, especially if it's about the future." In the context of forex traders, however, the quote would go this way: "Prediction is much more difficult when it's about currency trends. " Just how would that happen? Forex rates are always flashed on the monitor and obviously, one can predict forex rates and how it would go in the next minutes or hours. If that's the thing you have in mind, you are like digging your grave in the forex perspective. Having the idea that you can predict forex to get the forex edge would lead you to an immediate failure. Forex rates are very unpredictable because it mainly moves due to human nature. The same way we do some things which people don't expect of us, forex rates also plunge and rise unexpectedly. Predicting forex is more like predicting and reading the minds of millions of forex traders and large finance companies. Thus if you predict forex, you might as well predict your downfall- which would be more accurate. How, then, could you get a forex edge without having to predict forex rates? This may be a harder-than-prediction task but it would yield more accurate results. First thing you should do is to condition your mind and make yourself adhere to the belief that you really can't predict forex. Otherwise, you would end up doing risky things, time and again. Learn how to interpret the forex charts. Understanding what these charts show and what the fluctuations and events mean to your money is a good initial step in being a successful forex trader. Realize the trading signals and find out if they are gaining momentum among other currencies in the chart. If you find out that significant forex trading signal gained momentum, don't jump immediately into the opportunity. Let other people do it first in order to validate and confirm the impetus. This way, you get some support and more odds into your side which may ultimately lead to better forex success. Forex momentum oscillators are good tools for determining the currency thrust. These are technical indicators of a currency's positive or negative turn. One example of this oscillator is the RSI or relative strength index. Because of the more technical nature of these oscillators, there is a more promising outcome for you, as compared when you predict forex all by yourself. Making a dive in the forex market is an irreversible action which is why one needs to carefully weigh all the support and trading signals before executing a deal. Forex edge is what you should aim for and there are a lot of online resources which would lead you to more accurate forex trend analyses. The rule is just simple- never predict forex rates so you might end up foreseeing more successful outcomes. Something that can help a Forex trader better predict price movements are what is called Forex forecasting. When you have such a high paced and chaotic environment has the Forex market, a tool such as Forex forecasting can be a great benefit. Forex forecasting uses both types of analysis, technical and fundamental. Although when they combine both types, this is when Forex forecasting gets its best results. The reason that Forex forecasting uses fundamental analysis is because this type better predicts future price movements. When using this type of analysis it is very important to look at economic, political, environmental and other relevant external factors that have a direct or indirect effect on supply and demand. Someone who analyzes using this type of analysis has to be someone who is very skilled. This is because in the Forex market, when using this type of analysis for Forex forecasting they have to be able to predict fairly accurately what the price of currency should be based on external factors, not the actual current price. On the other hand Forex forecasting involving technical analysis has a bit of advantage in basing its predictions on past market fluctuations. This makes it more based on factual information, rather than hypothetical like fundamental analysis is. Another advantage of this type of analysis is that they can look at several different markets and indicators at the same time. When using Forex forecasting with technical analysis you must remember three things. These three things are that there are no surprises when using this type of analysis. Also when using this type of analysis the specific patterns are followed, which the market is based on, it is easier to predict a repeat of these patterns and successfully use this to your advantage. Lastly these patterns are a direct reflection of human psychology. Details involved in technical analysis involves five different and distinct theories in order to be used in Forex forecasting. These theories include indicators such as oscillators (i.e. Relative Strength Index theory), the number theory including Fibonacci numbers and Gann numbers, waves such as the Elliott wave theory, gaps such as high-low and open-closing theory and trends such as following the moving average theory. Regardless of all the theories that can be used in forecasting or which method is used, a lot of data and research goes into it. The use of new software and the readily available historical information can definitely make Forex forecasting a lot easier now then it used to be.

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