Forex Trading Course Walkthrough Talking Points:
- This is the eighth of a ten-part series in which we walk through articles from DailyFX Education[1].
- The aim of this series is simplicity while covering some of the more important aspects of the FX market along with traders’ strategies and approaches.
- If you would like to access the full suite of educational articles offered by DailyFX education[2], you can get started here: DailyFX Forex for Beginners[3]
The concept of support and resistance is a key component of technical analysis and, for many, especially fundamentals-based traders, the concept is the primary aspect of technical analysis. Its assistance with risk management can be enormous while its ability to predict, like anything else, is questionable because the future shall always remain uncertain.
Many traders eschew that lack of predictability to instead focus on probabilities, which can be helped by a multitude of technical tools. There are many ways of doing this.
A number of experienced traders employ price action and related methods, which involve using no technical indicators on the chart and instead focuses on patterns or formations. This is certainly available to you but, as a warning, it is usually considered ‘advanced’ and may not make much sense to traders new to charts.
In place of price action, many traders look to indicators and, again, this is a very wide field of analysis. To get started, we suggest learning about probably the simplest and most utilitarian indicator: The Moving Average.
Moving Average (MA) Explained for Traders[4]
After gaining an understanding of the moving average, traders interested in learning more can discover the many indicator tools available to traders to help them customize their strategy or approach.
