Currency Trading Charts - Two indicators that bring huge profits

Currency Trading Charts - Two indicators that bring huge profits

Using two indicators listed here, with your currency trading charts, will help you gain a trading advantage - and a chance to bank huge profits.

Let's look at these indicators individually, with foreign currency charts - and see how you can combine them for a profit potential.

Indicator # 1 - Stochastic

This is the best short-term indicator for all, to define the strength of this trend.

Stochastics are in excellent warning of corrective actions against the underlying trend - and swing trading in non-trending markets.

Generally, the indicator values ​​over 75 are considered overbought, and below 25 oversold. Pre buy market simply means that the withdrawal will happen when the market is over sold, and the rally is due.

The consolidation period, you will see the currency trading charts that this indicator is extremely accurate. However, during strong trends, it may be wrong. In strong trending markets only, consider differences in the overbought zone to be important. In addition, the turn of oversold areas - or close to average, to warn the trend is continuing.

Benefits - use your currency trading charts for entry and exit positions. Also, use Stochastics in periods of consolidation, turn to trade - in trending markets to take profits, or load up positions.

Indicator # 2 - Bollinger Band

If you use futures trading charts, but never used this indicator, it should be! Why? - Because this is an excellent indicator to define the input and output levels, in trending markets - and also be warned of the trend is changing.

Bollinger Bands indicator is really great - but very few traders actually use them properly.

The purchase of foreign exchange charts, Bollinger band indicates overbought and oversold levels, relative to the central moving average - with a band on each side.

Futures trading charts on the following rules generally apply:

Contracting bands warn that the market is about to trend:

The bands are joined in the "narrow door" - followed by strong price movement. Note: The first breakout can be a wrong move - preceded by a strong trend in the opposite direction.

A move that starts at one band normally carries to the other, the consolidation of the market.

A move outside the band indicates that the trend is strong and likely to continue - if the price changes quickly.

A trend that hugs one band indicates that the trend is strong and will probably continue. Wait for divergence of the momentum indicator to signal the end of this trend.

A trend that dips to the central band in trending markets - if you have a central band, then this usually means that the market will occur - and continue to the primary trend.

Advantages - currency trading charts, Bollinger bands show strength of this trend, and they can be used to enter and exit positions.

By themselves, Bollinger bands can give many false signals - but in combination with stochastic, they prove to be a very powerful tool.

Using Bollinger Bands and Stochastics Together

For example, if you are in a strong trend, while prices dipped to the mid band - should take a position?

If stochastic impulse turns, then trade can be initiated in the direction of the primary trend.

In periods of consolidation, the break of the head, with the support of the stochastic momentum may be an indication of purchase.

A market hugging the top of the group Bollinger, in a strong bull market may be sold by retailers in the short term - if the stochastic crosses with bullish momentum divergence.

Defining the strength of the Trend

You get the picture! - The currency trading charts, Bollinger band gives us a clear picture of trending, or not-trending markets - and stochastics show momentum in the short term - so that they can be used in conjunction with the swing or long term traders.

If you only use these two indicators, in conjunction with trend lines, your currency trading charts - you will improve your trading edge - and profit potential.

Practice makes perfect - so some time to look at your currency trading charts, and see how these indicators complement each other - to use them, and get ready for huge profits!