Some Forex trading systems promise high rewards but offer no statistical data to back them up
. Many automated trading systems make claims of great success and may show trading records but they offer no information on how the trade signals were determined.
Can a trading system trade at success rates as high as 90%? Yes they can and the statistical data is there to prove it.
BUT the trader needs to be aware of what they are looking for. For trades to be successful they require momentum. Momentum needs to be available in two directions at the same time like a ball thrown into the air. It has momentum up from the force of the throw, and it has momentum down from the force of gravity when it reaches its peak.
There are 4 signals that traders should learn in order to find this peak and when to take advantage of it. They are Bullish and Bearish Divergences and Bullish and Bearish Reversals and they are found on RSI charts.
The signals will tell you when and where the momentum changes, the market will tell you the second type of momentum, i.e.
The first step as a Forex trader is to locate all the divergences and reversals on your trading chart for the currency pair you are trading and the time frame you are trading. I suggest starting with the EURUSD and the hourly time frame and I suggest trades that occur after the news of the day EST and before the London market closes. Finding all of them can be a task. You can locate them faster with The RSI Paint Indicator.