Online Trading Academy Article of the Week

by Sam Evans, Online Trading Academy

When I am working with new students at the various worldwide campuses across the Online Trading Academy network, one of the common queries I receive is with regards to how our patented rule-based core strategy works alongside traditional methods of technical analysis.

For those individuals who have had some experience with studying charts before coming to one of our classes, it can often be almost alien to them when we start to teach on naked price charts alone. You see, most forms of trading and investing education focus their methods and approaches upon more traditional methods of finding low risk high reward trading opportunities. Not that I’m saying there’s anything wrong with this by any means; however, we can put ourselves at a major disadvantage if we are not aware of how the more conventional methods of analysis can trip us up if we’re not careful.

If you are struggling with this concept then I invite you to think about it from this perspective: every single trade charting software out there has literally hundreds of technical analysis tools built into it and these tools cost us absolutely nothing to apply to our charts and begin using right away. From a purely logical standpoint, I believe it makes sense to question just how worthwhile these tools could be if they are basically free? Now don’t get me wrong, I am not saying that classic indicators like moving averages, stochastics and oscillators are a waste of time. It just tends to be the case that most people have not really been taught how to use them in a worthwhile fashion; and by that I mean implementing them on your charts when you actually understand price itself and how it behaves on a day-to-day basis.

If you were to take a class with us you would learn how to identify the most important elements of any price chart, namely supply and demand, and how to recognize where the greatest imbalances are present on price charts. Simply put, price will always be the only true leading indicator. When you understand this, you can simply combine this knowledge of where the biggest banks and institutions are placing their orders in the markets to buy and sell currency with the use of supporting indicators. This is how we find our supply and demand levels and these levels are always our foremost reason to enter any trade.