Anyone who wants to become a better currency trader should study Dow Theory, because it's one of the most important and influential theories in technical analysis. Understand it and apply it and you will make bigger currency trading profits.
Victor Sperandeo also known as "Trader Vic" is considered one of the true trading greats having over 40 years experience in the stock, bond, futures, commodities, and currencies. He was acknowledged as one of the true trading greats when he was a 2008 Inductee into the Trader Hall of Fame by Traders Magazine and has been nicknamed the “Ultimate Wall Street Pro”
John Murphy, a leader in the technical analysis of financial markets and has drawn upon his thirty years of experience in the field to develop ten basic laws of technical trading, these key points define the key tools of technical analysis and how to use them to identify buying and selling opportunities and below are his rules which are basic of course but most traders don't practice them in their trading strategies.
Many currency traders tend to look at currencies in isolation from other markets - but the fact is they don't just move in isolation, they move in relation to domestic and global economic trends and that's why studying intermarket analysis is such a valuable currency trading technique - let's look at this trading method in more detail...
Three popular technical indicators many traders use are - the Relative Strength Index (RSI) Average Directional Movement (ADX) and Parabolic SAR.What they may not know, is that all of these indicators were designed by one individual: J. Welles Wilder JR and appeared in the ground breaking book “New Concepts in Technical Trading” which was published back in 1973. Welles Wilder was an innovator in the field of trading indicators and is seen as one of the most influential technical anyalists of all time – Let's take a look at Welles Wilder and his trading techniques in more detail.