Technical Tools

Technical tools

In this section, we shall investigate many of the technical tools that traders use. These tools are not important in themselves, they are not based upon some fundamental law of nature. Instead, they may have become popular over time due to publicity and as a result, they are only useful inasmuch as speculators use them. If there is no evidence that such a tool is utilized by other traders in a specific currency pair, then, according to the descriptive method, they are rendered useless.

We are not trying to collect indicators for the sake of it. It is very easy in this game to be surrounded by lots of information that says very little. What is more important is that the speculator has an indicator; that is, some substantial evidence that points in the right direction. Each currency pair has its own character. Consequently one must not presuppose while investigating potential indicators, that an indicator which works for one pair will work for them all.