Newbie Forex traders become addicted to all of the colorful indicators that are available on their charting platforms bouncing from one to the other looking for the holy grail. This period can last anywhere from a few weeks to a few years.

It is very rare that a Forex trader finds that perfect combination of indicators and becomes profitable. One of the reasons is that indicators are lagging the price. Another reason is that the market conditions are constantly changing. The combination of indicators that work great one day may not work at all the next. As traders we are looking for consistency so after a few losses we decide that the settings must be wrong or that the indicators need to be changed. Over and over again, this cycle repeats…

Often after a great deal of trial and error with indicators, traders will start to learn about price patterns such as: double tops/bottoms, head & shoulders, channels, bull/bear flags, trendlines, etc. These can be more reliable but often are not enough on their own to acheive consistent profits.

What’s needed is not a “holy grail technique” but a thorough understanding of market conditions and when to use the techniques. This requires a great deal of screen time to become intimately familiar with the different market conditions. Knowing when to stay out of the market is very important as sometimes it is much better to be on the sidelines. There is a saying that “better to be out wishing you were in, then in wishing you were out”. If you have been trading for a while then this should make a lot of sense to you.

Ultimately your success is going to be based on becoming an expert and this will take time, whichever paths you choose becoming aware of the big picture will serve you greatly.