Do You Still Lose?
What Is the Best Indicator in Forex Trading?
The candlesticks article that I had promised is published. Please spend some time and read it and let me know if you have any question.
I have another request too. If there is anything about Forex and technical analysis that you need to know and learn, please let me know. I will try to write an article about it.
Tip of the day:
Instead of the tip of the day, I like to refer you to the candlesticks article once again because candlesticks are really important. If you read the article you will admit.
I know most of you use the candlesticks in your analysis but there are also a lot of traders who do not use candlesticks. They have them on their charts but have not learned to read and analyze them. It will surprise you if I tell you that there are a lot of traders who use only the candlesticks and no other indicator. I am one of them as you see but I also use the Bollinger Bands because they increase the value of the signals that the candlesticks give.
Yes; there are many traders who only use the candlesticks and technical analysis and not any indicator and these traders are among the best because they don’t become fooled by the false signals that the indicators make usually.
Ok! Let’s check the currency pairs:
1. Euro against US Dollar (EUR-USD):
As I predicted yesterday, it broke the 23.60% level strongly and went down for over 180 pips. Hope you went short on time. Bears are so strong but the 38.20% level is also so close.
I don’t see any reversal signal in any of the smaller time frames right now. In 4hrs the last candlestick is a Doji but it still has 3 hours to become completed. It think it will keep on going down.
2. US Dollar against Swiss Franc (USD-CHF)
Bulls succeeded to break the resistance and are testing the Bollinger middle band right now.
In 4hrs it broke the triangle up but it is stopped by the 38.20% level by now.
The one hour admits that the 38.20% level is strong and so we will have a consolidation.
3. British Pound against US Dollar (GBP-USD)
This one went down nicely after retesting the Bollinger middle band on Jan 18 analysis. It is still strongly Bearish.
The 4hrs is strongly Bearish too and there is no considerable Bullish signal yet.
The one hour shows some important Bullish signals and I think you have to close your short position by now. It is still early to take a long position. If it breaks the resistance (the thick purple line) you can go long. I think it is the time for the GBP/USD to make a consolidation because it has been going down strongly for several hours.
4. US Dollar against Japanese Yen (USD-JPY)
It went down and will go down as long as it has not broken the resistance (the thick purple line).
The 4hrs shows that it is testing the resistance strongly. I suggest you to close your short position if you have not done it yet.
The one hours chart shows that is forming a consolidation.
5. British Pound against Japanese Yen (GBP-JPY)
Did you go short yesterday?! You have lost 300 pips if you didn’t.
As predicted yesterday, it didn’t succeed to break the resistance (the already broken support) and went down nicely. The pattern of the chart is so similar to USD/JPY. The daily is still strongly Bearish.
Also in the 4hrs, as predicted yesterday, the price retested the broken neckline of the head and shoulders unsuccessfully and then went down. Currently it is showing a strong Bullish activity that forces us to close our short positions (if you have not closed it already).
The one hour chart shows that the resistance is being broken and so the price will go up and we will have a consolidation at least.
6. Euro against Japanese Yen (EUR-JPY)
This one should have also made another 300 pips if you went short yesterday. Hope you did.
The daily is Bearish but the last candlestick is forming as a big Bullish candlestick. It is possible that it goes down again but you should have closed your short position sooner to maximize your profit.
If the current candlestick in the 4hrs chart remains a strong Bullish candle, the price will go up and we can go long.
The one hour is showing something else. The price went up but it is stopped by the 23.60% level. Thanks Fibonacci 
I think it will go down once again but we have to wait for the next candlestick to confirm. But if the current last candlestick in the one hour chart, keeps its long upper shadow, I will go short again. Lets see. It still has few minutes to become completed.
Check back for other currency pairs analysis result in a few hours.
Further Reading:
Before
leaving our website, please take a look at the other articles we have published.
Dear wahid.
Is quite nteresting to read your articles on Forex. U did very good job on forex signal.it t become a habit for me to check on yr daily signals.
pls keep up the good work. I am lost on fibo. Some time is drawn from top to down on daily chart and when one hour been drawn from down to top.Can u pls explain. Your assitance is great help to me./
2 days ago was a buy Eur-Usd > 12 300 000 000 Euro.When you see orders like that you should know that the price will reverse very soon.Someone big was there…
Don’t show only the good comments
Dear UFO (understandable flying objection!!!),
It seems you do not know what I am doing here. I have repeated this several times that I publish my reports to teach technical analysis and as you see I merely talk about the charts.
On the other hand, who says that all trades should be ended to profit? If all trades should be profitable then what is stop loss for?
Lastly, I don’t show only good comments. As you see your comment is here too.
Happy trading and don’t forget to put a stop loss
Hi Mr. Forexoma, Im following your analysis and articles since a few weeks. I found them simple and clear, you are a very skilled guy! I trade by now with an hourly system and I try to put all together …Ive just downloaded your candlestick article and it seems very nice.
Now a question, a doubt I always have: you often talk about breaks of support resistence or trendline, this is the core of your system (by now Im mainly a trend follower on hourly basis). Myself I was burned many times with fakes breakout. The point is: can you help us with some example and ideas about when a breakout is a good one. Hope my question make sense, sorry for my bad English.
Renzo
I like your technical analysis but I don’t like :”It think it will keep on going down.” When you “think….” you’ll never trade carefree.
I only know that no trade has a guaranteed outcome.Let the market say to you “I’m still going down now,in this moment”
Hi again UFO,
I have already mentioned in my previous reports that when I say “I think…” I just want to mention my guess and I have always emphasized that we do not trade according to what we think. We trade according to what we see.
But you opened my mind about something very important. New users find my weblog everyday and they may make mistakes when they see sentences like “I think…”. So I will not use these kinds of sentences any more. Thanks a lot.
Renzo,
This question is asked by so many users. I will write a detailed article about it and will explain everything. Thanks a lot.