When Forex trading is concerned, technical analysis will always be part of the topic. It is also one of the most common issues being tackled. For investors who are more traditional, they tend to reject the idea of price chart positioning. In this article, we are going to tackle the issues and criticisms that are being made by several traders about technical analysis.
One common criticism thrown towards technical analysis is the loss of focus towards the fundamental analysis when a technical analysis is used to determine the right position of the trade. Most of the time, the facts shown in technical analysis differ from fundamental analysis. This is also possible when trading in MetaTrader 4. Most of the time, technical analysis counters this because, in fundamental analysis, it is hard to find the right entry points when buying and selling assets in the financial market.
In addition to fundamental gaps, there are also instances in which a technical analysis was not able to alert a trader during extreme volatility. To resolve this issue, the trader will have to use financial new developments for them to fully understand the cause of the extreme volatility.
If traders fail to understand the cause of this volatility, then it becomes totally hard to determine when these movements can last. If this happens just for a short while or if this will be a long-term situation, you must be able to determine it without fail. These questions are most not addressed by regular traders.
Combination of Techniques
Both technical analysis and fundamental analysis have their own strength to boast. Fundamental analysts tend to use several charting techniques in combination with fundamental assessment when it comes to the underlying asset’s strength. So, if you are planning to use these tools, it is better to settle on the best trading platform for Forex trading. This is none other than MetaTrader 4.
MT4 offers a good amount of technical indicators and promotes automated trading to suit the time that the trader can allocate on trading. Automated trading is very efficient nowadays as it offers convenience to traders who are not able to stay in front of their monitors all day. With automated trading through the use of Expert Advisors in MT4, trading opportunities and constantly found.
Expert Advisor (EA), also known as Forex robots, monitors your trades and notifies you whenever there are potential trades according to the conditions set by the trader. Why should you use EA? It is accessible, time-saving, promotes emotionless trading, flexible, and allows backtesting.
Just to ensure that your EA is working in the best possible condition, you should backtest it using the MT4 demo account. You won’t be wasting funds, your account is protected from risks and you can test your EA before you use it in the live market. Running your EA in MT4 is also very easy. All you have to do is to install it like when you use it in the live market.