Forex Focus  |  MAR 2011

Channels In The Forex Markets by Gareth Burgess

The foreign exchange markets are an arena of competing forces constantly in conflict with each other. The markets are torn apart by worry, uncertainty, doubt, fear and greed, not to mention profit. As a consequence, many traders get shaken out of their positions by a short-term wave of opposing news. Even when a position is showing a profit, there is never a certainty that the market will continue in the anticipated direction and there is almost the same sense of relief when getting out of a good position as in liquidating a bad one. As a result, many traders tend to play a zero-sum game. When they see a profit, they take it. When they see a loss, they run it. A successful trader must trade from a known plan — one that not only supports the direction of the position in the market but also helps to remain confident in the original decision. In this article I’ll demonstrate that if used properly, technical chart analysis can be accurate and profitable, especially in a trending market.

by Gareth Burgess