Forex Trading Tools

In my last post I touched briefly on forex trading tools. I would like to go into more detail about how to use some of these and maybe answer some questions that many new traders have. The very first thing for everyone to understand is that forex trading tools and indicators are two very different things. I don't want to insult anyone but when you're new to forex some of this can be very confusing.A forex indicator could be classified as a tool to some degree because you are using it to help you make decisions in the market. I don't place too much weight on indicators because they are lagging by nature. What I mean by that is they actually calculate past data with complicated formulas in an attempt to "predict" where the forex market will go next. To me this is not a forex trading tool because I can see what the market has already done. I'm more interested in where it's going.Forex trading tools on the other hand have much better predictive value and can be used to not only enter the market exactly where you want, but also gives you an idea as to where to exit. Examples of forex trading tools are trend lines, support and resistance, and Fibonacci. These forex trading tools are used by some of the best traders in the world, and if you do not have them on your charts you should do so as soon as possible. There are many different strategies that traders use these forex trading tools for and many are successful. I would recommend everyone do research on all of these forex trading tools and see if you can develop a strategy that works well. I will go into more detail at a latter time. I hope to break down each forex trading tool and go into detail about some of the different ways they are used. So for now visit as many forex related forums as you can and register in some of them. Ask questions! There are a ton of helpful traders out there that are willing to go out of their way to answer your questions about forex trading tools and many other topics. Most are very happy to help because at one point in time they were new to forex as well. I hope some of this information is helpful to you. Please check back often as I intend to really get the ball rolling on this subject.