Free forex signals arent all they are cracked up to be. A large misconception of new and intermediate forex traders is that you can simply look at a few indicators such as a bollinger band or elliott wave analysis, and they get ready to take a position when they get an indicator. That is great if it actually worked. The problem is that it doesn’t.
These indicators are by nature lagging. This means that they do not indicate a sell or buy signal until well after a position should be taken.
One thing any investor that is profitable knows that being late on anything, even if it is good information will lead to financial ruin. Does this mean that you should not be using indicators? Absolutely not. Just make sure that you are using them as a guide instead of a tell all to make you trade decisions.
So if you cannot use indicators to make your trades, what can you do? The best thing a new forex investor can do is understand to major components that drive markets. You should be able to understand the relationship between volume, and price movement.
These two things together can give a window into what is really going on in the market and who is leading the charge. often a juggle back in forth means the bulls and bears are in equilibrium and that they are fighting to regain control of the market and begin a larger trend in one direction. This of course is over simplified for the sake of making a point.
A real professional forex trader must be able to take in all the major inputs of…