How to Trade using basic Tech. Indicators: Trade Example from Feb 8
The pair has recorded much bearish behavior in the past 2 weeks. However, the technical data indicates that this trend may reverse anytime soon. For example as described below, the daily chart’s signals that a bullish reversal is imminent. This might be a good opportunity for forex traders to enter the trend at a very early stage and at a great entry price.
Below is the daily chart of the EUR/CAD currency pair.
The technical indicators that are used are the William Percent Range, Relative Strength Index (RSI), and Slow Stochastic.
Point 1: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the oversold territory, signaling upward pressure.
Point 2: The Williams Percent Range has peaked near at the -100 marker, which means that there may actually be a strong level of upward pressure.
Point 3: The Slow Stochastic indicates a bullish cross, signaling that the next move may be in an upward direction.
Below is the daily chart of the EUR/CAD currency pair.
The technical indicators that are used are the William Percent Range, Relative Strength Index (RSI), and Slow Stochastic.
Point 1: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the oversold territory, signaling upward pressure.
Point 2: The Williams Percent Range has peaked near at the -100 marker, which means that there may actually be a strong level of upward pressure.
Point 3: The Slow Stochastic indicates a bullish cross, signaling that the next move may be in an upward direction.
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remember that Stochastics can get embedded and trapped in the 0 to 30 area, if so this would be a sign of a strong bear continuation, I would be looking to a 4 hr chart, to spot upward strength as well be for going long. ( minutes make hours, hours makes days, days make weeks.)
Trade safely,Posted 02-09-2010 at 09:57 AM by larryfolson
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