USDZAR color coordinating analysis
1. I like trading USDZAR because of the large movement potential. Same reason I like trading Bitcoin, not because the currency is realistic as a monetary replacement to the dollar. I am, however, in support of block-chain technology because of its utility in health & data storage. NOWHERE on the stock market will you see regular moves so big for maximizing profit potentials (on a swing or day trade basis). I've been trading 10 years, take my word...
2. I like to color coordinate my charts. The GREEN line lets me know where the most recent long-term support is located. I say long-term because this is a 4 hour chart. Movements between tops & bottoms of channels could take weeks or months. As a day trader, a price move taking weeks is "long-term" for me. Technically, its more like medium-term, as a genuine "long-term" analysis would be based off a weekly or monthly chart time frame. The GOLD line is a "short-term" area of resistance that may present a problem for price to re-test the most recent high (The RED line). The RED line is the most recent resistance area (again, based on this 4 hour chart). The purple line is the 1st place I'd be expecting to take some profits, as the chart's history has made it clear that this is a price level that more traders are willing to sell.
3. MY STRATEGY: In most of my posts, you'll see that I mainly trade from tops to bottoms of channels. Selling the "highs" & buying the "lows". I'm not here to teach you how to trade, I'll make videos after I'm done pursuing some personal goals of mine. However, the more you look at my chart drawings & other traders who use trend lines & trend channels, you'll begin to see the simple trading patterns that emerge on every trading chart in the world. I color coordinate my lines so that every few hours or few days, they can serve as land-markers to remind me of where price is, where its been, & where its potentially going.
Trading is simple, yet being patient for price to test potential reversal zones is what's difficult. Every technical analysis strategy in the world begins with this foundation. A trader's ability to consistently wait patiently for patterns to form, price levels to be tested, & trade what's seen (not assumed) will be the key to long-term success. A lack of discipline will see a trader frustrated & wanting to quit before they can even see their own potential...thanks for checking out my trades!
2. I like to color coordinate my charts. The GREEN line lets me know where the most recent long-term support is located. I say long-term because this is a 4 hour chart. Movements between tops & bottoms of channels could take weeks or months. As a day trader, a price move taking weeks is "long-term" for me. Technically, its more like medium-term, as a genuine "long-term" analysis would be based off a weekly or monthly chart time frame. The GOLD line is a "short-term" area of resistance that may present a problem for price to re-test the most recent high (The RED line). The RED line is the most recent resistance area (again, based on this 4 hour chart). The purple line is the 1st place I'd be expecting to take some profits, as the chart's history has made it clear that this is a price level that more traders are willing to sell.
3. MY STRATEGY: In most of my posts, you'll see that I mainly trade from tops to bottoms of channels. Selling the "highs" & buying the "lows". I'm not here to teach you how to trade, I'll make videos after I'm done pursuing some personal goals of mine. However, the more you look at my chart drawings & other traders who use trend lines & trend channels, you'll begin to see the simple trading patterns that emerge on every trading chart in the world. I color coordinate my lines so that every few hours or few days, they can serve as land-markers to remind me of where price is, where its been, & where its potentially going.
Trading is simple, yet being patient for price to test potential reversal zones is what's difficult. Every technical analysis strategy in the world begins with this foundation. A trader's ability to consistently wait patiently for patterns to form, price levels to be tested, & trade what's seen (not assumed) will be the key to long-term success. A lack of discipline will see a trader frustrated & wanting to quit before they can even see their own potential...thanks for checking out my trades!