The title of the book Technical Analysis for the Currency market By Boris Schlossberg is a bit limiting since the book is not confined to technical analysis alone and includes risk management along with trading psychology. It serves as a valuable introduction to those new to forex trading and provides deep insights into the working of the rapid moving currency market. Written by a currency strategist who has studied currencies and their price movements extensively, the book reflects his analytical ability and his profit making strategies are easy to follow and learn from.
The book is written in a simple and easily comprehensible manner, starting with the basics of technical analysis, the broad range of technical analysis strategies employed by traders and also throws light on trade management techniques. The book is both interesting and gripping with examples to demonstrate the point being made, charts and diagrams to make the price trends easier to understand. The educative content, the easy to follow tips and currency specific trading strategies, combine to enhance the comfort level of a new comer in the currency trading market.
Technical analysis is critical in forex markets since they witness short term volatility with long term trends that provide multiple profit opportunities. These are even more widespread today with the internet providing online trading opportunities to far more people. The secret of success lies in being able to combine technical analysis with the latest news about the forex markets, price movements and trends, the trading ranges and individual trading behavior.
The book highlights the following points:
- Introduces technical indicators needed for charting analysis
- Incorporates the basics of candlesticks charts and moving averages
- Elaborates on the five principal themes driving currency markets
- How trading patterns indicate individual personality traits
- How Fibonacci levels help in trading and are much more than plain numeric values
- How to use Bollinger Bands indicators for trend trading
- Using oscillator strategies for finding the divergence between price and momentum
- The importance of risk management
Technical analysis for the currency market also reflects the author’s firm belief that risk management or rather, risk control is extremely important. Traders, both experienced and novices should make trading moves they believe in and those reflect their personality, since these show their comfort level. These strategies may be easy to learn at the outset but have to be perfected over time to yield better results in terms of profits.
