Does anyone really know when and how Forex trends determine its direction? My response is "YES". How about you? Even most of Forex experts give analysis of the proposed direction of the market using Mechanical Strategy (TOP FOREX TRADING STRATEGIES).
In the past, lots of strategies has been tested and created in form of Robot (Robot is a programmed software for trading instruments automatically) but later discovered that most of the programmed Robot still need mechanical skill to complete or compliments it efforts. Mechanical, in the sense of having manual intervention in other to perform well.
In recent times, lots of Forex trader, the experts, the intermediates, the beginners are always advised and encouraged to learn the basic rudiments of trading, that is, having a Mechanical strategies in place (ability to determine trend direction using indicators, charts, graphs, new alerts, economic forecasts and all) setting your trade yourself in other to achieve great result. There is one common mistake about Automated System, it lacks common sense but with Mechanical Strategies, having gotten all your parameters and information needed, you can hardly place a wrong position because you will input value derived yourself.
Top Forex trading strategies are mostly mechanical in nature because, entry to any position either a buy order or sell order is made on the formation of valuable candles and calculation you derived. One interesting thing about Mechanical Strategies is that market movements are captured to the fullest. For example, if you have indicators like 5SMA and 8 SMA on an hour chart timeframe. Immediately you get a cross of both SMA's, you wait for a confirmation on the lower timeframe (5minutes) for a close above or below to fill your position. With this, you can more than 200pips because you keep trailing your profits until trend changes. Stop orders can also be used to ensure you enter your position at your specified price.
There are three important advantages to why you should trade learn to trade Forex Mechanically. • You are required to learn all the gimmicks, that is, the charts, the currency type, correlation between your trading pairs. Knowing all these, gives you an edge over placing wrong trades. • You can have your position set by using stop order which will executed you're your desired prices reaches. Set it and forget it and your meet your GREEN PIPS! If you have conservatively set your parameters the system should capture regular profits for you! • From my experience, this kind of Forex trading behavior enlightens you and keeps you to your attitude. You are surely going to obey the rhythms of your indicators in other to have a profitable trading experience.
I strongly advise anyone interested in Forex trading should take his/her time in learning the Mechanical Strategy. Mechanical Strategy is all about reading and interpreting candles and lots more.
