There is a lot written about Forex market timing and traders are always looking for greater accuracy in terms of timing there trading signals - so let's look at better market timing in more detail.

The first point to make is Forex markets move to probabilities and don't move to certainties, this means there is no way of predicting where prices may go next.

The Myth of Prediction

There is a big obsession with predicting market turns in advance and catching market highs and lows but if you do try and predict with your Forex trading strategy, you are simply hoping and guessing and your predictions will end up as accurate as your horoscope.

Trading When the Odds are at There Best

When looking to time your trading signals, look to trade AFTER a trend change has been confirmed in the market.

While you won't catch the start of the move you will be entering the market when the odds are at there best and you can focus on the great profits ahead of you rather than the small bit of profit you have missed. Always keep in mind, if you caught just 50% of every major Forex trend, you would be making great profits.

So what scenario's should you look for when timing the market?

Breakout Trading

A great way to trade is via breakouts, if you look at every major Forex trend you will see it starts and continues by breaking to new market highs and if you buy breaks of strong resistance levels, you can make huge gains. Breakout trading is one of the most effective ways to get in on trends and the method is one every Forex trader should be familiar with.

The Concept of Divergence

Any trader who wants to time market reversals should look at the concept of divergence. If a price is rising in a strong trend momentum will also be rising, if momentum diverges from price it's an indication that the trend maybe ready to turn.

To enter wait for momentum to turn down and enter your trading signal – don't anticipate a top wait for it to be confirmed. There are many momentum indicators you can use but the more they are overbought in historical terms, before the signal is given the better the odds are on the trade.

Buying Dips to Key Moving Averages

If you have a strong trend and you want to get into it, you can wait for a breakout but if the price is pulling back, you can also buy to a key moving average.

Key moving averages in strong trends are the 20 and 40 day MA's When a price pulls back to these levels, look to buy into the trend supported by a momentum turn up. Don't just buy the dip make sure the trend change back up is confirmed.

Your Aim – Make Money and Forget Perfection

When trading currency markets forget about trying to catch the exact turn of the market with your Forex trading system and always wait for the move to be confirmed before entering. Your not interested in being clever in Forex trading and being perfect – That's not possible your interested in making money and by waiting for the move to be confirmed you will be trading with the odds on your side and if you have the odds on your side, you can enjoy long term Forex trading success.