Some people say FOREX trading isn’t about technical analysis at all, and the price movements of currency pairs are random. There is no predictability. We are trying to force patterns into a random movements, and make up technical lingo so our minds can comprehend them. Trying to predict whether a currency pair will go up or down is almost impossible. You would have the same chance of success if you tossed a coin, and put a BUY trade if it came up heads, and a SELL trade if it came up tails. It’s all about money management. As long as your stop loss and take profit ratio are big enough so they cover the probability of making a loss, you should be profitable in the long run.
Throw a coin.
Place a BUY trade if it comes up heads.
Place a SELL trade if it comes up tails.
Take profit should be at least 2x bigger than the stop loss.
This method cannot be back-tested as the results cannot be duplicated.