There are numerous theories that are said to be scientific and three of the most common are Fibonacci, Elliot Wave and WD Gann. They all claim to be able to predict forex prices in advance but how successful are they?
The problem with these theories is they are all flawed and none of the above made any profits with the theories and they developed them! - So why don't they work?
Because while human nature is constant, it's not predictable with scientific accuracy.
Humans are not creatures of logic - but creatures of emotion and that means there is no formula that can be applied to this vast, diverse group that will work.
This is actually pretty obvious as if there were a scientific theory of market movement that worked all the time, we would all know the price in advance and there would be no market as of course we would all know the price in advance!
Prices actually move because we are unpredictable and this is the basis of any free market.
A BETTER WAY TO MAKE FOREX PROFITS
If you try and predict forex prices ( not just with a scientific theory) you are destined to lose anyway because prediction is really another word for hoping and guessing and that won't get you very far in life and especially not in forex trading!
You can't predict so don't even try, as your predictions will end up being as accurate as your horoscope.
A better way to trade is to hit high odds set ups, in fact - it's the only way to trade.
You are playing a game of odds not certainties - but that doesn't mean you can't make big profits, you can and the rewards are enormous.
Keep in mind the following fact when you trade forex:
All prices are pushed to far up or down by human emotion and then return to fair value. If you can spot and act on these price spikes, you can make huge profits and there easy to spot on a forex chart. You simply wait until the price spikes and then look for a waning of momentum and hit your trading signal - in the opposite direction.
This happens time and time again in forex markets (or any market for that matter), these price spikes fade and if you can catch them you have great profit potential with low risk.
Once a trend does develop you trade with it - but there are always price spikes along the way (within trends) for swing trading or (at the end of trends) for long term trend followers.
Forex trading has not changed over the years.
Despite the vast amount of progress we have made in science in other areas of life forex trading remains an odds game where the appliance of science won't help you - but simply trading the odds will and can lead you to currency trading success.
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