Based on the amount of money being traded, the international forex trading market is the world's biggest financial market. Everyday, forex trading market gets an average revenue of $US 1 trillion-an amount far greater than the total revenues produced by all the stock and bond markets in the world.
Stochastic Oscillator is widely used in stock trading also. Similar to Forex trading, this indicator comes with two relative factor, %K and %D. This indicator shows momentum over a number of periods with closeness relative with current Close price with High and Low difference, which is also the support and resistance level.
Contrary to popular belief, you actually don't have to adhere to just one type of analysis. The most successful Forex traders are those who exercise caution and open-mindedness. They use both types of analysis to gauge changes in price and volume, spot trends, and make informed decisions. There is no need to choose a side; after all, both past and present developments can affect the future. For bigger profits, learn both types of analyses and become better at currency trading now.
Now I am not saying you can start trading forex tomorrow and quit your job by the end of the week, but if you applied yourself and really focused on become a good trader, you could definitely build yourself up to the level where you could one day leave your day job and become a full time trader.
First thing to remember is, Forex markets are in no way scientific. You can never apply science to win in forex trading. No scientific theories can assist you in the forex market simply because determining the price is done by human decision and not based on science.
If you find yourself putting lagging indicators on your charts in order to find an entry signal or analyze possible price direction you need to ask yourself one question; is there a more logical way to analyze this market? The most logical way to analyze forex or any market is to look at what price action is trying to tell you. Price movement is a reflection of human behavior. Human behavior is repetitive; people generally react with a certain range of emotions to any economic event. This is why you here such sayings as “buy the rumor, sell the fact”, this saying results from the way markets behave to news. Markets operate in future time, meaning traders bid up the price when they expect something good to happen or offer the price lower when they expect something bad to happen. Once the event actually occurs there is nothing more to expect so price will generally begin to move in the opposite direction.
Learning how to read forex charts can definitely improve your potential success when trading. Charts provide you with insights into market movements which allow you to determine trends. Subscribing to a signal service is also advised as you can be made aware of market movements as they occur. This will enhance your ability to enter and exit the market at the right time.