ForexFloorTrader

ForexFloorTrader

My favorite currency pair to trade is EURUSD as it is the most liquid currency pair. My favorite time frame to trade is the 1 minute time frame. Some traders will say this time frame is too noisy to trade but this is not true for the EURUSD because of its liquidity. The trends on the 1 minute time frame look the same as other time frames. My trading day starts at...

ForexFloorTrader

Yesterday EURUSD started trending upward and formed a large green candle. When price moves significantly and forms larger than average candles price most often but not always retraces approximately 50% of that candle. Notice price has now moved back down to the 50% level of yesterdays candle (tall green candle). Also notice the horizontal red support line I...

ForexFloorTrader

In this analysis I have turned to the 4 hour chart to get a closer in look at the details of price action over the last few days. The 4 hour chart shows the EURUSD price having met support from the weekly downward sloping channel support line (black) and the monthly support line (blue). A confluence of two support lines is a formula for strong support. Notice...

ForexFloorTrader

Having analyzed EURUSD on the monthly chart I have learned to expect a reversal in the long term trend to occur next month (March). One thing I forgot to mention in my monthly analysis is that price moves from support to resistance and then back to support again until a breakout occurs. Once a breakout occurs it is an indication that the trend is going to...

ForexFloorTrader

Over the last several months I have been trading mainly the EURUSD. In order to know how to properly enter a trade Long or Short I do a top down analysis. In performing my top down analysis I start with the monthly chart, then move to the weekly chart, then the daily chart, then the 4 hour chart, then the one hour chart, then the 15 minute chart, and finally the...

ForexFloorTrader Updated 

I thought it was about time for me to re-start posting my chart analysis ideas again. To start my analysis of a currency pair the first thing I do is to get a look at the BIG picture. To do this I turn to the monthly chart time frame. In this time frame, I want to mark out the major Swing Levels. A swing level is a level that has once been a Support level and...

ForexFloorTrader

On Feb 25 EURUSD formed a Doji (see black triangle). The following day the market closed below the low of the Doji triggering a Sell signal (see red arrow). Next, a series of red arrows indicated the continuation of the downward trend. On March 9th, the market posted its first green candle indicating the market had moved too far from the 10 and 20 period EMA's. ...

ForexFloorTrader Updated 

DAILY TIME FRAME The thick blue line labeled "P" on the daily chart represents the "Monthly True Value" of GBPAUD. The thick dotted gold line just above the monthly true value line represents the three month average of the monthly true value. Since the Monthly True Value line is below its three month average it indicates GBPAUD is in a monthly downward...

ForexFloorTrader Updated 

BULLISH TRADE SETUP ANALYSIS Monthly TF = Bullish Daily TF = Bulish Type of Trade = Momentum Breakout Time to profit target = 1 to 2 days Reward to Risk Ratio = 3:1 Risk = 1% of account balance

ForexFloorTrader

MONTHLY CHART In analyzing this monthly chart I am starting at the left edge of the chart. Looking at the first eight candles I see they are all moving downward indicating a downward trend. In analyzing the trading psychology that goes into forming this downward trend I notice that all these candles are red, except for one. Red candles are formed by the Close...

ForexFloorTrader Updated 

Today I have removed all past comment balloons as well as the higher resistance line and lower support line so I could highlight the tighter trading range. TUTORIAL Monday's candle formed a Bearish Engulfing pattern. Engulfing candles are reversal candles so today's engulfing candle is indicating a reversal in trend from up to down. This candle is also a very...

ForexFloorTrader

GBPNZD is the most volatile currency pair with an average trading range of 198 PIP's per day. GBPNZD has held the number one spot in volatility since 2014. In preparing to trade this currency pair on the Daily Time Frame I go to a higher time frame to determine what the trading psychology has been. What I want to determine, is the current trading psychology...

ForexFloorTrader

TUTORIAL Looking at the Monthly Candles. Price action in February and April formed a Hammer candle pattern. A Hammer is a reversal pattern. While these two candles are considered reversal candle patterns they are not strong reversal candle patterns as they did not Close above their Open. A Strong Hammer pattern would have closed above the Opening price level...

ForexFloorTrader

TUTORIAL Today's candle formed a Neutral candle. Looking at the anatomy of today's candle the High and Low made a higher high and a higher low indicating the trend remains upward. However, the Close of today's session closed midway between the high and the low showing a balance of trading strength from both the buyers and the sellers indicating a neutral trading...

ForexFloorTrader

TUTORIAL Today's candle was a very bullish candle. Looking at the anatomy of today's candle notice Close is above its Open indicating a bullish candle. The long lower Shadow of the Candle indicates a rejection of lower prices as buyers overcome the sellers. The candle also has a short upper shadow indicating little rejection of higher prices. Lastly, the...

ForexFloorTrader

TUTORIAL Today's candle was a very bullish candle. The candle was bullish because it Opened at the Low of the session and Closed near the High. The lack of a lower Shadow indicates there were no sellers trying to push the market lower. The lack of a tall upper Shadow indicates the market was not rejecting higher prices. TRADING Today's candle broke out and...

ForexFloorTrader

TUTORIAL Today's candle might be called a Gravestone Doji but it is not a Shooting Star. You might call it a Gravestone Doji but the real body is technically too tall. Today's candle is not a Shooting Star as Shooting Star's only occurs after an upward trend but this market is trading sideways in a trading range. If today's candle is not technically a...

ForexFloorTrader

TUTORIAL Today's candle (4/27/2020) formed a Doji. A Doji is a "Neutral Candle" indicating trader indecision. A "Close" above the "High" of the Doji indicates the price is ready to move higher and a "Close" below the "Low" of the Doji indicates the price is ready to move lower. TRADING Go "Long" on a Close above the High of the Doji or go "Short" on a Close...