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According to The Daily Forecaster subscribers...
The FX-Forecaster Trader Package for MetaTrader 4
So you're bearish... so where do you sell? When do you sell?
For new traders and seasoned traders alike these are probably the biggest hurdles to overcome and failure to identify the right entry
level is possibly the most common reason why 70% of traders lose money. You can get the direction right but if you don't get your
entry right then you can get stopped out before the movement lower occurs. Some use a larger stop loss but if you get the direction
wrong the loss can seriously damage your margin deposit.
So you're bearish... so where do you sell? When do you sell?
For new traders and seasoned traders alike these are probably the biggest hurdles to overcome and failure to identify the right entry
level is possibly the most common reason why 70% of traders lose money. You can get the direction right but if you don't get your
entry right then you can get stopped out before the movement lower occurs. Some use a larger stop loss but if you get the direction
wrong the loss can seriously damage your margin deposit.
This is why you need professional help...
How would you like to know where support and
resistance lies ahead of time? Would you like to
have this type of support? Ian is renowned for the
frequency that he do just that.
The Daily Forecaster subscribers have benefited
from these levels and the FX-forecaster Trader
Package brings these to you at an affordable price.
However, how do you know when support will hold
and when it will break? When should you sell into
resistance and when should you buy into breaks of
resistance?
How would you like to know where support and
resistance lies ahead of time? Would you like to
have this type of support? Ian is renowned for the
frequency that he do just that.
The Daily Forecaster subscribers have benefited
from these levels and the FX-forecaster Trader
Package brings these to you at an affordable price.
However, how do you know when support will hold
and when it will break? When should you sell into
resistance and when should you buy into breaks of
resistance?
You need tools to assist you when making trading decisions...
Consider the charts above in USDJPY. At the top left is the weekly chart, to the top right is the daily chart, bottom left the 4-hour chart
and bottom right the hourly chart. The FX-f Equilibrium Cloud has been developed to identify areas of price equilibrium in
consolidating markets and act as a dynamic cloud of support or resistance in trends.
Note how the Cloud in the weekly chart is providing resistance while price has begun to dip below its Cloud. Coming down into
shorter time frames the 4-hour Cloud is providing downward resistance as price rallied from a low. We can go deeper and then
consider the hourly Cloud. At the top left of the chart is the peak of the rally at 92.31 where soon after price descended below the
Cloud (also in the 4-hour chart) and came to a low at 90.24. The recovery was sharp and reached 91.60 (where it failed to push
above the 4-hour Cloud.)
With FX-f RSI at overbought levels we may be able to consider a drop below the hourly Cloud as bearish - but where do we sell?
Price declined to just above 90.80 and pulled back into the hourly Cloud and failed to push above. Do we sell at that point? Well, let's
take a look at the 5 minute chart:
and bottom right the hourly chart. The FX-f Equilibrium Cloud has been developed to identify areas of price equilibrium in
consolidating markets and act as a dynamic cloud of support or resistance in trends.
Note how the Cloud in the weekly chart is providing resistance while price has begun to dip below its Cloud. Coming down into
shorter time frames the 4-hour Cloud is providing downward resistance as price rallied from a low. We can go deeper and then
consider the hourly Cloud. At the top left of the chart is the peak of the rally at 92.31 where soon after price descended below the
Cloud (also in the 4-hour chart) and came to a low at 90.24. The recovery was sharp and reached 91.60 (where it failed to push
above the 4-hour Cloud.)
With FX-f RSI at overbought levels we may be able to consider a drop below the hourly Cloud as bearish - but where do we sell?
Price declined to just above 90.80 and pulled back into the hourly Cloud and failed to push above. Do we sell at that point? Well, let's
take a look at the 5 minute chart:
At the peak price ran into a resistance
line with FX-f RSI overbought. It backed
Cloud at a short term equilibrium. We
are bearish and price now breaks
below the 5 minute Cloud, is below
the hourly, 4 hour, daily and weekly
Clouds. That's a lot of bearishness...
So where is the selling point? Well,
the prior low would be good to confirm
a new lower low and below the 90.80
support... In this example price
continued its decline holding below
the declining Cloud and with the FX-f
Trailing Stop indicating a bearish trend
in red...
line with FX-f RSI overbought. It backed
Cloud at a short term equilibrium. We
are bearish and price now breaks
below the 5 minute Cloud, is below
the hourly, 4 hour, daily and weekly
Clouds. That's a lot of bearishness...
So where is the selling point? Well,
the prior low would be good to confirm
a new lower low and below the 90.80
support... In this example price
continued its decline holding below
the declining Cloud and with the FX-f
Trailing Stop indicating a bearish trend
in red...
Using momentum indicators at support & resistance
Momentum indicators can tell you quite a bit, but you have to understand exactly what this is. There is no magic about any indicator at
all. They cannot forecast, identify support or resistance or magically make you profit... To see the advantages the FX-f Indicators
provide take a look at the indicator descriptions here. The main information you can draw from them is whether momentum is
strong or weak and whether the speed of a trend is declining. (Click here for articles on divergences.) Consider the decline in
USDJPY as it arrived at support.
all. They cannot forecast, identify support or resistance or magically make you profit... To see the advantages the FX-f Indicators
provide take a look at the indicator descriptions here. The main information you can draw from them is whether momentum is
strong or weak and whether the speed of a trend is declining. (Click here for articles on divergences.) Consider the decline in
USDJPY as it arrived at support.
So how could we not know that price
would not stop at 90.80 or even the next
support at 90.56? After all, FX-f RSI was
means we can buy at support if
momentum is oversold. Well, it is best to
understand that extreme readings can
also be considered as the market being
extremely bullish or, in this example,
extremely bearish.
Well, there is no black and white. It is
possible that the support may hold.
However, look at FX-f RSI. It is oversold
but still pointing lower. If price is to
bounce, then we need to see this first.
How to read momentum is frequently
covered in the daily and weekly reviews
that Ian produces to support this
package...
would not stop at 90.80 or even the next
support at 90.56? After all, FX-f RSI was
means we can buy at support if
momentum is oversold. Well, it is best to
understand that extreme readings can
also be considered as the market being
extremely bullish or, in this example,
extremely bearish.
Well, there is no black and white. It is
possible that the support may hold.
However, look at FX-f RSI. It is oversold
but still pointing lower. If price is to
bounce, then we need to see this first.
How to read momentum is frequently
covered in the daily and weekly reviews
that Ian produces to support this
package...
In fact it is just not safe to buy when
there is some other indication to
suggest it may hold.
To help us make that decision we know
that all FX-f Equilibrium Clouds are
providing resistance. To the left is the 1H
chart at the same point showing the
decline from the Cloud.
What is more, the hourly FX-f RSI is
oversold and still pointing lower. This
raises the risk that price will just
continue lower and we have a safer
short trade. It can never be 100%
guaranteed but we are putting the
odds more in our favor.
The indicators in the Trader Package
provide complimentary information that
outline the picture as a whole.
there is some other indication to
suggest it may hold.
To help us make that decision we know
that all FX-f Equilibrium Clouds are
providing resistance. To the left is the 1H
chart at the same point showing the
decline from the Cloud.
What is more, the hourly FX-f RSI is
oversold and still pointing lower. This
raises the risk that price will just
continue lower and we have a safer
short trade. It can never be 100%
guaranteed but we are putting the
odds more in our favor.
The indicators in the Trader Package
provide complimentary information that
outline the picture as a whole.
If we are looking for a much safer trade then consider the hourly chart above at the bottom of the trend. The bullish divergence is a
warning that the speed of the downtrend is slowing. It is a warning that a reversal may happen but we need more information. We
can see that FX-f Equilibrium Cloud is providing resistance and at the latter stages much closer to price. This adds weight to the
possibility of a reversal. Now consider the 5m chart at that point:
warning that the speed of the downtrend is slowing. It is a warning that a reversal may happen but we need more information. We
can see that FX-f Equilibrium Cloud is providing resistance and at the latter stages much closer to price. This adds weight to the
possibility of a reversal. Now consider the 5m chart at that point:
At the bottom left is the final stages of the
downtrend. Could we tell at that point that it
would definitely reverse? Well, again, there is
no such thing as a definite signal. We can
only add up the evidence and base our
trades at those times when evidence from all
time frames come together.
The 5 minute FX-f RSI also formed a bullish
divergence and at the 90.07-25 support area.
Note that the 5m FX-f Equilibrium Cloud was
also trailing just above price providing
resistance. If we are confident then we could
consider buying at 90.25 with a stop below
the lower support at 90.07. A break above the
Cloud at around 90.40 would be the first
confirmation of a reversal but then we need
to remember that this is in the middle of the
hourly Cloud. Break of the hourly Cloud
would add weight to deeper correction.
downtrend. Could we tell at that point that it
would definitely reverse? Well, again, there is
no such thing as a definite signal. We can
only add up the evidence and base our
trades at those times when evidence from all
time frames come together.
The 5 minute FX-f RSI also formed a bullish
divergence and at the 90.07-25 support area.
Note that the 5m FX-f Equilibrium Cloud was
also trailing just above price providing
resistance. If we are confident then we could
consider buying at 90.25 with a stop below
the lower support at 90.07. A break above the
Cloud at around 90.40 would be the first
confirmation of a reversal but then we need
to remember that this is in the middle of the
hourly Cloud. Break of the hourly Cloud
would add weight to deeper correction.
| FX-f Indicators along with the support & resistance help in identifying lower risk trades... For more information on the FX-f Indicators click here. |
DISCLAIMER
FX-forecaster indicators are generated from mathematical algorithms and do not provide trade signals. They are intended only as analytical tools and
are not intended to replace individual research. The support and resistance provided in The Daily Forecaster should not be relied on as a substitute
for extensive independent research before making your trading/investment decisions. Ian Copsey is merely providing this service for your general
information. No representation is being made that any support or resistance, whether supported with indicators readings will guarantee profits or not
result in losses from trading. The FX-forecaster Trader’s Package is not meant to be either investment advice or a solicitation or recommendation to
establish market positions. Ian Copsey will not be responsible for any losses incurred on investments made by readers and clients as a result of any
information contained in this service.
FX-forecaster indicators are generated from mathematical algorithms and do not provide trade signals. They are intended only as analytical tools and
are not intended to replace individual research. The support and resistance provided in The Daily Forecaster should not be relied on as a substitute
for extensive independent research before making your trading/investment decisions. Ian Copsey is merely providing this service for your general
information. No representation is being made that any support or resistance, whether supported with indicators readings will guarantee profits or not
result in losses from trading. The FX-forecaster Trader’s Package is not meant to be either investment advice or a solicitation or recommendation to
establish market positions. Ian Copsey will not be responsible for any losses incurred on investments made by readers and clients as a result of any
information contained in this service.
| (c) Ian Copsey 2010 |
DISCLAIMER
Foreign exchange (Forex) and contract for difference (CFD) trading carries a substantial level of risk to your capital. There is a
possibility you may lose more than your initial investment and trading in these products may not be suitable for all investors. Ensure
you fully understand all the risks involved and seek independent advice if necessary.
Foreign exchange (Forex) and contract for difference (CFD) trading carries a substantial level of risk to your capital. There is a
possibility you may lose more than your initial investment and trading in these products may not be suitable for all investors. Ensure
you fully understand all the risks involved and seek independent advice if necessary.