2015-10-23_00-17-57euraud

Trading is very personal. What this means is that a system might be working for someone but not for everyone.

Also the information needed to build a system has to be so specific that the trader himself has to see what works best and what does not.

With this post I try to share information that follows a certain logic at least in my humble opinion.

As you know I watch the 200 moving average very closely.

The other thing I watch out for is MACD crossing the zero line. I recommend to be aware of the news like for example using forex factory for important news releases.

Actually you should watch out for whenever Draghi or Chair Yellen speaks.

Well today Draghi spoke and of course one could expect lots of volatility which is common for these speeches. We could also expect the dovishness for the euro due to quantative easing which can be extended over the year 2016 if needed.

Well MACD crossed the zero line and price went below the 200 MA and there was our trigger. A very nice move if you were infront of your screen watching your charts.

The second red arrow has the purpose to show you that you should preferably sell the stochastik oscillator when it provides full cycle or at the 80 percent level.

This just means that you sell high as you should in other cases buy when price is low.

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