It is clear that many people want to learn how to trade in the Forex market. If this is you, you have to make a decision. Should you use technical analysis and basic analysis? Most good traders have a decent understanding of at least one of them. If you do not use at least one of these, it will be very difficult for you to make a living in the Forex market.
Unfortunately, most traders do not take the time to learn at least one form of analysis properly. We live in a time when traders prefer to trade according to what their gut feelings tell them. That just won’t work.
Most traders have no clue about the basic analysis. I’m not as knowledgeable as an economist or analyst. That would be unfair to make that comparison. But many traders don’t even know the basics, such as the importance of off-farm payroll numbers and how they affect the price of currency. You have a lot of traders who have no idea how interest rate decisions affect currency prices.
This would not be so great if more traders understood the technical analysis. When most traders think about technical analysis, they think that all they need to know is when their stochastics tell them to buy or sell. THIS IS NOT A TECHNICAL EXAMINATION.
Stochastics or any other delay indicators cannot provide you with information about technical analysis. All you need is your eyes and a simple bar chart.