There are many ways of doing the technical analysis in the forex market. Most of the novice traders trade the live assets in the market by using indicator based trading strategy. They simply think that by using too many indicators they will increase the chances of winning in the forex market. But if you look at the professional trader then you will notice that every single one them are trading the live assets with no indicators (some professional use one or two indicators at times). They simply trade the key support and resistance level in the market and make consistent profit in forex trading. In this article, we will discuss three mandatory trading tools that every trader should know.
Fibonacci retracement tools: The Fibonacci retracement tools is one of the best tools in the forex market. The professional traders use this tools to draw the important Fibonacci retracement levels in the market by using the key swing high and lows in the market. The best way to trade the important Fibonacci levels is by using the price action confirmation signal. Price action confirmation signal is a great tool to enhance your trading performance and if you can truly master the art of price action trading strategy then you can make a decent profit in the market.
Moving average: The moving average is one of the most popular and simple indicators used by many professional traders. It allows the traders to trade the dynamic support and resistance level in the market and make a decent profit. When you use the moving average in the market make sure that you don’t use more than two moving average in a single chart since using too many moving averages will increase the doubt in the market. The most popular moving average in the financial market is the 100 and 200-day moving average.
Channel trading strategy: This is one the most popular trading strategy in the financial market where the professional traders sell the channel resistance and buy the channel tops in the market. If you are relatively new in forex trading then you should know how to draw a valid channel in the market. While trading the channel you can also use price action confirmation signal in the market to increase the reliability of the trading signal. Those who are trading the channel for a long period of time always use the higher time frame since it eliminates lots of false signals.
Summary: In this article, we have discussed the three most important element that every trader should know while trading the live assets in the market. If you are relatively new in forex trading then it will be a little bit difficult for you to understand the market movement using this tools but if you have strong determination than over the period of time you will realize why these are called the most useful trading arsenal for the traders. The best way to trade the assets by using tools is by following price action confirmation signal in the market. If you trade the market with price action confirmations signal then you will be able to reduce the risk exposure to a great extent.