Longer Time Frame Concept for Foreign Exchange Trading Indicator using Matrix Correlation Technique

Most traders will be faced with the selection of the appropriate period to be used in the Foreign Exchange or Forex Indicator when conducting a Technical Analysis of price movements in the past period, and also as a tool to predict the direction of price movements on the next period. Most traders will make many models for one indicator using different periods for backward price analysis and other models to predict future price movements. Imagined how many models are created and used, if in a Forex chart uses many Indicators. Practically Traders are often fixated on the Theory of Forex Trading and rarely adapt to current market conditions. The Concept of Longer Time Frame using Matrix Correlation Technique can facilitate Traders with the selection of Indicator Periods based on a Longer Time Frame. Traders only use one model for backward price analysis as a tool to predict future price movements. Authors used a literature review research method on Foreign Exchange Technical Analysis in applying this concept. The final result of this study hopefully can facilitate Traders in carrying out technical analysis in foreign exchange trading.