To succed in forex trading by having one profitable trade after another, one necessary ingredient as we all know is correct chart analysis. If your chart analysis is not correct, you cannot proceed further.

Chart analysis is not just about plotinhg correct currency pair or having most advanced indicators. It is also about timing as well as having a clear mind with no pre-conceived notions.

Let us look at some of the key essentials and necessaties of making sure that you analyse the chart correctly -

1. Timing of analysis - By this what I mean to make sure that when you are analysing the chart the market is ready for accepting trades. If for example you are analysing close to a fundamental announcement like Non-Farm Payrolls, then definitely placing a trade at that time will be highly risky! Or if you are analysing during off-liquid hrs, then the analysis will not be correct.

2. Plotting the indicators correctly - This is an obvious one. But often traders make mistake while plotting tyhe indicators. Sometimes they either plot too many indicators and sometimes far too few. There shouldn't be more than 3-4 indicators plotted at any time. Out of these one indicator should be primary and the rest as confirming indicators.

3. Avoiding pre-meditated mindset - This is a big point. Let me tell you an example. Years ago when I was trading, I used to have a mindset whenever I opened the charts that I need to find a trading opportunity. So, I used to look at charts differently and ecause of my pre-meditated mindset I used to find tradinmg opportunities when they didn't used to exist. Needless to say most of these trades used to end in loss.

A trader should always analyse the chart with a clear mind and be ready for the fact that the trading opportunities will not be available each and everyday. But when they exist, s/he should not second guess and should place the trade without any fear.

There are other aspects also when doing correct forex chart analysis. But if you are able to master the above 3 aspects, then you can be certain that you have got atleast 90% of analysis right!

***Please share your comments in the comment section below and if you liked the article,  please share it with your friends by tweeting it or posting on your facebook page.***

Forex Traders sometime ask me suggestions on which Forex currency pairs should they typically trade.

If you are ever had same confusion, then it typically implies few things -

1.You don't have any particular Trading plan in place - The reason I saw this is because If you are not sure of pairs to trade, then it means that you are not referring to a particular trading strategy. Each good trading system highlights which currency pair it works best with.

2. The trader doesn't has enough insight in each currency pair - See, if you are aware of what are the positives and limitations of each currency pair, then the decision will become much easier. For example, we know that USD/CAD is highly influenced by Oil prices. Similarly, USD/CHF has negative correlation with EUR/USD. Another one, EUR/GBP is less volatile so it moves slow, but each pip is worth $1.5

The selection of currency pair to trade should be based on -

1. The volatility of the currency pair - Does it move much? Does it move enough to follow technical patterns?

2. What is the spread - If the spread is large like 10-12 pips, then the currency pair is not suitable for day trading.

3. Is the currency pair technicaly moved or is it highly driven by economics - USD/JPY for example is highly economically influenced and doesn't respond to technical analysis that well as compared to other currency pairs

The above factors will help you decide on currency pairs that you should trade.

Now, if you ask me one or two currency pairs that you should always consider, I would recommend you - EUR/USD and GBP/USD.

Why? Because they meet all the above requirements. They are highly liquid, they have very tight spread like 2-4 pips across more or less all the brokers and they respond very well to technical levels.

So, if you are just starting in forex trading, start with these currency pairs.

I just created a video to explain you my $691 Delphi Scalper Bonus package. Watch this short video to know the details.

The details are available at - http://www.Delphi-Scalper-Bonus.com  .Remember, I am giving this bonus to only 1st 25 people

Remember to follow the instructions and use this link to claim my Delphi Scalper Bonus package