Let´s get started!

Here comes the first post in my forex technical analysis blog.

To begin with I should say that I have been dabbling in TA for two or three years as a hobby. I conduct TA on stocks as well as forex but it is only in the forex market that I engage in actual trades. My reasons for choosing the forex market is because it is very well suited for technical traders and there are many online brokers with low spreads and good trading systems.

For those who don´t know, forex is short for foreign exchange, meaning the trading of international currencies. Technical analysis (TA), is a way of analyzing a market by looking at charts and chart patterns instead of fundamental values. If this actually works or not can be debated endlessly, I will leave that subject alone. To read more about the basics of Technical Analysis, a good site is www.investopedia.com. This blog will probably be hard to read without at least basic knowledge in TA, but getting to that level is pretty easy just from reading online sources.

My reasons for starting this blog is mainly to improve my own analyzing and raise the level of my knowledge and reasoning of TA. When it comes to trading, the best advice is always your own advice, but sharing ideas and getting constructive comments is often a great way to raise awareness about different tools or other perspectives. I feel that if I write my analysis and reasoning for the public to see, it will force me to take more time and make more considerations and end up with a better analysis. Also if I expose my entries and exits I can´t lie to myself about trades and make excuses for bad trades. One of the biggest problems for traders in general is holding one self accountable for bad trades, and I can say that I am no exception. So basically, my reasons for having this blog is that I think it will improve my own trading.

I should add that I would love for there to be interaction with the rest of the TA community. A good debate following a posted analysis would be great, so I am hoping for comments from visitors, both experienced and learners, so feel free to ask questions too.

Finally, I should say that my personal style of trading has a trade duration of a few days to a week. I have experimented with both longer and shorter trades time wise, but I felt that I didn´t have enough time to keep up with shorter trades, and lacked the patience for longer trades. I often look for either channel breaks or bounces with oscillator indicators as support. In general I like to have at least a couple of tools agreeing with each other and really trying to wait for trades to appear and not force them to appear.

My next post will have a TA analysis with entry and exit strategies. Feel free to ask questions or comment in any way.

/Henkos