I am a self-taught independent trader based in Australia/Hong Kong. I trade mainly in Forex and and occasionally in precious metals, stock market index futures. I have been in the Financial markets since 1993 and have accumulated extensive trading skills, experience and market insight.
Over the years I have studied and tried all known approaches to trading – fundamental, simple & complex indicators, software automated trading systems, etc. After all this study I have come to the conclusion that classical technical analysis works best. As we know from engineering, the more complex a system, the more fragile it is, more likely to blow up. On the other hand, simple systems are robust. Classical technical analysis and chart patterns are robust and work more often than not, even in modern markets. I have personally done research verifying TA for major forex pairs from 2001 – 2012. Admittedly, chart patterns involve some degree of interpretation, leading different people to different conclusions and making them hard to program into automated systems. However, on balance, I find classical technical analysis the most useful approach for trading.
Patience and discipline, essential for succeeding as a trader, are even more important when using classical technical analysis. This is one area where I am constantly learning and striving to improve.
Comments and constructive discussion are welcome. You may leave comments here or contact me at zenfxt at Gmail dot com.