Let us have a look at a number of the various kinds of strategies and processes you can use in the Forex market.
You understand the kind. You have only read about it in one of the Forex newsgroups out there. When the 27SMA crosses the 51EMA and the PSAR is under the cost activity, then the stochastic crosses all while the moon is high in the heavens and, by the way – this system is acceptable for trading in the morning.
It is clear this type of trading strategies are never going to work, though so a lot of people feel the necessity to try them out. Well if this is you, good luck. You are likely to want it.
Trading strategies that rely on a load of indexes around your graphs are never going to work long term. They have been designed by an individual who happens to see that it is working right now on a currency pair or two, on a definite timeframe. It is also worthwhile pointing out that these trading procedures and strategies which are designed and posted in trading newsgroups are often the work of unprofitable dealers, who are still bound from fakey trading strategy.
My advice, avoid at any cost. You will save yourself lots of heartache and money.
Old school technical analysis
You may try the old school technical analysis that is been in existence for as long as everyone can recall. There is ascending triangles, consolidation breakouts plus head & shoulders designs, flag designs and every one of the other designs from technical analysis 101. Well the nice news is this stuff works. It’s done for generations, and is extremely prone to keep working well to the long run.
The tough part is that many of newer dealers only find this kind of trading dull, or much less exciting as an index driven system. They believe that the more complicated the system, the much more probable it’s to be their holy grail.