Forex Charts Live
forex charts live
Forex Charts – Using Them to Generate Big Profits a Live Example
Here we are going to look at how to use forex charts with a live example in the markets and how you can use them to find high odds probability trades and the opoportunity we are going to look at is in dollar yen.
The dollar has had a great rally against the yen but the longer term trend I down are we near a top in the dollar. Let’s take a look at what the forex charts are saying – its Am 17 of January…
Forex charts can help you spot the low risk high reward trades and the set up below is such an opportunity. You will need a chart service and a great one is futuresource.com pull up the daily weekly charts and add the indicators below and you’re all set.
The main premise of the set up below is that the dollar has rallied in a down trend to firm resistance which presents an opportunity for dollar bears to accumulate yen
The Logic
If you look at the weekly chart you can clearly see resistance to the dollar at 114. We also have a yen trade that is up with lower highs from the July in a strong trend the mid Bollinger band will act as resistance or support, in this case it acts as resistance and is just above the 114.00 level. Momentum is up at present – will the resistance hold its time to look at the daily chart.
The daily chart again shows the dollar targeting the 114.00 level.
Prices have advanced through the middle Bollinger band on higher volatility and are at the outer band which is just below the 114.00 level. On both charts 114.00 is resistance and on the daily chart prices are now over extended on the upside.
Triggers
The first warning of a top is the RSI starting to roll over and double top with the October high at 60.00 level. Stochastic momentum is also turning over and we are looking for bearish divergence to be confirmed – the stochastic is turning down from overbought levels.
Even if the long term downtrend does not continue and the dollar breaks up longer term, we would still expect at least a good dip from around current levels to correct the dollars overbought status.
The advantage of forex charts is being able to step back and see the wood from the trees – if you act on what you see i.e the reality of price you can execute trading signals when the risk reward is in your favour.
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