Technical analysis: Same for Forex and Stocks?

Hey guys,

i’ve been wondering whether the technical analysis used in forex is the same when trading stocks/shares.
Anyone know of similarities/differences?

Thanks in advance,

barrettski

Hi.

I’m surprised you’ve not received any replies to your query. I guess everyone was waiting for me to ‘step up to the plate’, ‘tell you like it is’, and then ‘fire their arrows’, so here goes!!! LOL!!!

PERSONAL OPINION but based of PERSONAL EXPERIENCE OVER A LONG PERIOD OF TIME:

I BELIEVE that technical analysis works FAR better on Equities and Commodities than it does on Spot FOREX. There are MANY MANY differences between the Spot FOREX Market and any other market and I’m not in the mood to get into YET ANOTHER debate about this because it normally ‘leads to tears’ (for the most part on my part and, well, on a FOREX site and forums, I suppose it’s understandable TO A POINT).

Put another way and whether you deem this to be technical analysis or not: I know of trading systems, some based on price action and taking into account technical analysis that ARE NOT profitable on Spot FOREX but ‘work like a charm’ on Equities and Commodities. To this end: I have my own forums (because I got ‘shot down in flames’ when I wanted to have one little old forum opened here for those interested in trading Equities and Commodities). If you have the capital and the interest then my forums are here: techtradercentral.proboards.com.

Put another way and bluntly: I’m not sure why you’re asking but if you’re already successfully trading Equities and Commodities (or even individual stocks) then stick with what you’re doing. Don’t believe for one minute that you’re going to transition from those markets to Spot FOREX, use the same trading systems and methodologies, and you’re going to be more profitable. It’s not going to happen. Don’t get sidetracked or tempted by the high leverage offered on Spot FOREX and the fact that the Spot FOREX Market is open 24/5 etc. and that basically ‘anything goes’. That type of thing.

Right: ‘fire away’ lads. Just telling the thread starter what I KNOW based on EXPERIENCE and KNOWLEDGE.

Regards,

Dale.

That is what I thought when I was high on outrights and options on Futures & boy was I surprised when I spent a year adapting to a new environment (Forex).
It was then that I understood the tale in (The New?) Market Wizards where that guy wanted to trade bonds:

Maybe I’ll find the section in the book for the exact quote :stuck_out_tongue:

Hello.

Thanks. I’m not sure if you’re agreeing with me or not but thanks for not ‘tearing me a new ar*ehole’!!! LOL!!!

Regards,

Dale.

I only disagree with 2 out of every 3 things you say :56: :stuck_out_tongue:

Most systems have been developed to trade stocks, those systems need to be adapted and modified to work with Forex.

THANK YOU!!!

Regards,

Dale.

The principles remain the same; however, you need to understand how each market behaves. If you know how each market behaves, then you can adjust your plan accordingly.

I use Gann Analysis in Currency, Futures, Dax/Russell2000 and Bond Markets… I just look for the same setup over and over again. To me, a price chart is a price chart there is no difference.