When you enter the Forex world you will immediately realize the requirement to use technical analysis in order to find trends if you are looking at the Forex charts and also the significance of being aware of when they first develop so you can follow the trend until it ends. The Forex market is a very strong trending market with a lot of ups and downs in short periods of time and it is therefore a place where technical analysis can be very effective.
But you should always have in mind that the indicators only give you a high probability behavior the markets may show if you are trading but will never show you the behavior of the currency prices with total sureness.
If you want to become a profitable Forex trader you have to use as many technical indicators as you can or create a personalized trading strategy which is based on a combination of these indicators to recognize a possible trend. A professional Forex trader will try to identify the major trend, the intermediate trend and the short-term trend and then create his trades in that direction based on how long the rules allow him to hold a position.
The Forex market is always changing - that is why you should always have an open measure when you use your technical indicators. The markets will be changing and different combinations of indicators may be required with time in order to have the most accurate forecast of currency price behaviors in the future.
If the action of the market shows your opinion to be correct then you must consider to stay with the market and have a look for the maximum profit on each trade according to your money management rules. If the market goes against you a smart trader will take his profits and get out of the trade. When the price is not going anywhere in a narrow market but moves within a narrow range there is no sense in trying to anticipate when the next big movement is going to be.
So you always have to be attentive and open to use as many and as different indicators in order to stay with the market and become a profitable trader at the end of the day.