Smart and profitable traders are looking for the consistently wrong investor, trader and take the opposite position. This will obviously lead to winning trades for them. Stock and forex traders have read trading books that point out that increasing volume is good for the continuation of the trend. Many new traders will try and fight the trend.
Dollar index is a index that follows other currencies and measures the strength of the dollar compared to other currencies. It is a weighted geometric mean of the dollar's value compared only with. If you are trading the forex market you should also be watching the dollar index. Many times the dollar index will move in the opposite direction of the EUR/USD and the GBP/USD. By watching the chart of the dollar index on a one minute chart, and have your forex chart set at five minutes many time the dollar index will show a move. This happens many times especially if there is a spike in the index. The EUR and GBP will move in the opposite direction.
Euro (EUR), 57.6% weight
Japanese yen (JPY), 13.6% weight
Pound sterling (GBP), 11.9% weight
Canadian dollar (CAD), 9.1% weight
Swedish krona (SEK), 4.2% weight and
Swiss franc (CHF) 3.6% weight.
Summary : Target Level : 1.2763 Target Period : 3 days Analysis : Head and Shoulders identified at 22-Jun-00:00 2016 GMT. This pattern is still in the process of forming. Possible bearish price movement towards the support 1.276 within the next 3 days. Supporting Indicators : Downward sloping Moving Average Resistance Levels : ( B ) 1.2827Last resistance turning point of Head and Shoulders. Support Levels ( A ) 1.2763Last support turning point of Head and Shoulders.
Summary : Target Level : 107.1815 Target Period : 3 days Analysis : Falling Wedge identified at 15-Jun-04:00 2016 GMT. This pattern is still in the process of forming. Possible bullish price movement towards the resistance 107.182 within the next 3 days. Supporting Indicators : RSI below 40 Resistance Levels : ( B ) 107.1815Last resistance turning point of Falling Wedge. Support Levels ( A ) 105.7385Last support turning point of Falling Wedge.
Summary : Target Level : 104.6482 Target Period : 3 days Analysis : Descending Triangle has broken through the support line at 13-Jun-02:00 2016 GMT. Possible bearish price movement forecast for the next 3 days towards 104.648. Supporting Indicators : Downward sloping Moving Average Resistance Levels : ( A ) 107.173Last resistance turning point of Descending Triangle.
Trading the professional way really involves common sense. We should buy stock on sale and sell it when it becomes expensive, not the other way around When you trade you must fire on all cylinders; you must access and activate your resources, strengths and mental weapons in the psychological warfare which is trading. The trading trenches are not a place to vacillate and equivocate; you must be willing to demonstrate your ability to focus on what matters most in the trade. You must be willing to plan your trade and trade your plan with complete follow-through of all of your rules.