Have you ever wondered what really the greatest traders of Forex business (banks and the largest financial institutions in the world) are guided by?
Which indicators do they look at, what platforms and strategies do they use, what influences their decision to enter and exit the market? Moving averages, MACD, oscillators, doji candlesticks, maybe something else? What time intervals are taken into consideration?
Only few people realize that all these elements exist only for retail traders and they do not have nothing in common with the real trading. In the real market, nobody uses indicators, trends are not determined on various time intervals, because they simply… do not exist.. There is no CCI, RSI or stochastic.
From the very beginning of the adventure with Forex, we are bombarded with different systems. The creators of methods for speculation almost fall over themselves in next, more and more fancy indicators. The majority of them are based on the mother of all indicators – the moving average. Only it’s visualization is changed, i. e. everything what we finally see on the screen.
Here we face with an important truth about the systems. Why are the majority of them do not work? Is the selection of indicators inappropriate? Maybe they are badly optimized? moreover it is possible that they require updating from time to time to keep up with the constantly changing market.
The problem is that we use elements which are completely ignored by leading entities of the Forex market. You should answer the question: whether, for example, Deutsche Bank’s analysts refrain from the sell-off of euro during the financial crisis in Europe, because the price is precisely on the moving average EMA100 and it “should” bounce?
Do they buy the British pound despite poor production data from the UK, because… Read more…