I am sure you had enough Forex material to study over the weekend as Winner Edge released plenty of GREAT articles on Friday. 🙂 Here is a summary just in case you missed something:
Our DTT trend indicator is at the moment confirming the lack of an established trend in the market. With established we mean a trend which is taking place on both the 4 hour and daily chart. Surely we have trends on the 4 hour or daily chart, but not one that is in sync with each other. Here is an example:
That is however good news. Why?
The market does NOT trend all the time. This can certainly occur on occasion – even if a trader looks at other pairs than the majors. That is why our trend indicator is valuable in all cases: when there is a trend or not.
[tweetable alt=””]The trend indicator allows Forex traders to analyze the trend with a uniformed approach. [/tweetable]Without it, most traders are not certain whether they use exactly the same method for identifying the trend. And because of this, they do not know whether there is really a lack of trend, or whether it is their own misjudgment of the market.
With our DTT trend indicator, the good news is that Forex traders realize that it’s not their own mistake or miscalculations… they know that the market is just not in sync on the 4 hour and daily. End of story. No second guessing.
This is worth a lot of pips. Why?
Most trend traders lose their gains from trends in non-trending modes. By trading with the trend when there is an actual trend in place, we can save our capital and risk for the most appropriate points and reduce risk when there is no trend in play.
Does it mean that when there is a trend in play Forex traders will always make winning trades? NO, of course not. But at least traders will know when they can expect an edge (when there is a trend) and whether they don’t (no trend). Also, they don’t need to feel anxious about misreading the market (fear and trading psychology).
With that said, I do recommend looking at the Aussie. The GBPAUD for instance does have bearish momentum, which is best viewed by looking at the weekly chart and then viewing its 5 five bearish candles in a row.
There is certainly bearish momentum in play, but how long can it last? The answer is support, which could be Fibs or bottoms for instance. With the GBPAUD it’s clear that there is plenty of space to lower ground (red circles).
Last week’s high is a resistance level which is technically sound level to use for SL placement. I’d go 15 pips above that. We can also place a Fibonacci retracement on last week’s bearish candle.
a) Any of the Fibs can be the turning spot for more downside. Especially the 50% and 61.8% seem prime candidates.
b) The other scenario is bear flag pattern and then the 38.2% could be all it retraces.
Are there any particular traders which you have in vision? What setup do you see that you can share with the group?
Thanks for sharing this article and wish you tons of pips and Happy Trading!
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