Forex Charting Tutorials

After a week off from trading, to catch up on my fishing, I am impressed at the strength of this current USD rally. In my previous articles, I wrote about a 4th corrective wave down that was coming. The charts gave us clues long before it happened, and smart money built USD positions at all time highs for GBP/USD, EUR/USD, and AUD/USD, among others. August was an incredibly easy money month. All ya had to do was sell every rally, or buy every dip, depending on the pair. I monitor and trade around a dozen or so pairs, and they all move in sequence. Well, most of them, anyway…

I exited all my positions the last friday before Labor Day week. Then I scalped short term a few times after that. It was easy money. That last friday I closed 10 short term positions for +931 pips from the previous asian session entries. Didn’t even have them open long enough to collect or to pay swap. hehehehehe

What do the charts tell us now? September is a tricky month. We have NFP week now. Traders will position themselves accordingly. Bulls will have massive buy orders sitting somewhere, which will cause a whiplash effect and large tails on the candlesticks. Trading will get too choppy for large long term positions, unless they agree with the long term trend. I look for some profit taking and consolidation of USD gains before resuming the rally. There will be some stop hunting on low volume periods. It is best to establish a range in your trading pair with trendlines, fibs and sma’s. Place limit orders where the chart tells you price bounced before. It will bounce again around the same area, until it breaks out. A bounce is a rejection of trend, for whatever reason.