In recent years the trading world has seen some great
changes. Many of those changes have come in the form of
technological advances making it not only easier for traders to
execute trades, but also providing tools to compute seemingly
complex formulas and techniques into very definable and tradable
methods. These advances in technology have made it possible for
traders to begin to tap into the power of the world's largest
market, foreign currency exchange, like they have never been able
to in the past. My focus in this article is to describe how using
a non-linear approach to trading the markets will improve your
profitability and allow you to trade with a relaxed attitude and
The goal of any trading method is to take something that is seemingly very complicated and make it as simple as possible without losing efficiency or profitability. For the most part that is not necessarily how the human mind works. It is human nature to make things more complicated than they really are. Our minds trick us into believing that the more complicated something is the better. This is not always true.
Traders especially have a tendency to overcomplicate things. The consensus among new traders that are using technical analysis is the more you have to analyze the market with, the better. This could not be farther from reality. Many of the typical indicators that a trader uses to trade the markets will often give conflicting signals. The reason for this, as I will explain below, is that the indicators they rely on are indicators that are based on linear principles.