If you want to make big profits and you want a time efficient way to do it, a good option is to use currency technical analysis. While you can make big profits with currency trading charts, very few traders understand how to use them correctly. Here we will look at how to use them correctly and make bigger profits.

Let's get started and review the basics of becoming a currency trader using technical analysis

Decide Your Trading Time Frame

The first consideration you need to make in terms of your currency trading strategy is the time frame you wish to trade and in and there are three which are popular – trend following, swing trading or day trading or scalping. Your choice should be between swing trading and trend following, because within a day volatility is random, you cannot use chart support or resistance and this means you will lose.

Keep Your System Simple and Robust

You need to learn all about the basic chart patterns and have a good understanding of support and resistance and while you can trade with just currency charts, you can add a few currency trading indicators to time your trading signals with greater accuracy.

If you do decide to use trading indicators - always remember less is more! You only need a few and I would recommend 4 as a maximum number. If you make your currency trading strategy to complex, it will simply have too many parameters and break down in the brutal world of FX markets.

If you want some indicators to choose from look at – Bollinger bands, simple Moving Averages, the Stochastic, the Relative Strength Index (RSI), Average Directional Movement ( ADX) and Moving Average Convergence Divergence (MACD) and work them into a strategy.

Trade Confirmation and don't Predict or Guess

If you want to trade successfully, forget about trying to predict what the market might do and focus on what it is doing. Most traders see a level of support and want to buy into it but you must have confirmation that it has held first, before executing your trading signal and the same applies when selling into resistance. Markets cannot be predicted and if you try to predict, your hoping and guessing and will lose.

Charts represent high odds trading opportunities that are a reflection of human psychology and that's all. You can of course make a lot of money trading them if you run your profits and keep your losses small which is the subject of our next point.

Money Management & Stops

When you place a trade, you need to put a stop loss level in and this should be outside random volatility. Many traders place their stops to close so to avoid this learn about standard deviation of price and volatility, you can find more on understanding this key currency trading education, elsewhere on the site – so look it up.

If you assume the worst first, things can only get better and always keep in mind, you will have periods of losses, the best trading systems all have periods of draw down and yours will to – so keep losses small and when the big trends come around on currency charts you can run them and make overall profits on your trading account. .

Putting it ALL Together Your Trading Plan for Profits

When you have developed your trading strategy, if its based on the logic above it can make you a lot of money but always remember, the key to making money in FX with currency trading technical analysis is to keep your losses small and run your profits and this means trading with confidence and discipline.

I hope you enjoyed this brief introduction to currency charting success and you make great profits with your trading method – good luck!