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Forex Trends, Trend Line Indicator with Resistance & Support - trendsonforex.com

Discussion in 'Signal Services & Software' started by Freddy Trader, Aug 24, 2010.

  1. Freddy Trader

    Freddy Trader New Member

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    To trade the Forex market effectively, we want to know which currency pair now has a trend and how long it will continue. Well, it is not so for every trade, but if your strategy is based on trends - it's what you want to have.

    We think trend is unlikely to reverse when there are opposite market sentiments for the constituent currencies. For example, strong downtrend on EUR/USD will occur when market has bullish sentiment for the dollar and bearish for the euro. An uptrend may present even when the value of both currencies is increasing or falling, but it is not the best time for trading. Changing the value of a single currency can be determined by analyzing as many currency pairs as possible. Such algorithms present, of course, but we don't like them and that's why we developed our own.

    We use custom technique to assess market sentiments, determine trends and calculate Trend Stability Index (TSI) for 26 currency pairs on the Forex market. This situation is indicated by higher TSI values. Lower TSI values indicate weaker and more unpredictable trends.

    Forex is not easy to trade, but we are happy with results! We use it as a part of our trading system, which bring us profit. Probably you will not earn a million by using site information only, but definitely it’s a good idea to check you are trading right trend and currency pair. Again, this is not ready-to-use signals, but it is something highly recommended to be used together with your own trade system.

    You are welcome with your comments ^_^

    Check the picture below (this is what you'll see) and welcome to http://trendsonforex.com.

    [​IMG]
     
  2. Freddy Trader

    Freddy Trader New Member

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    Re: What are the current trading trends on Forex? We know!

    Hello everybody!
    We are preparing big answer to all of your questions, will post it in our blog. You will get how our trend indicator exactly works and why it works this way. And one more great news, we are going to add support&resistance levels with each currency pair. Check the trend, choose the “trendy” pair, get the levels and make your profit! We will do it and you’ll see. Nothing more – no advertising and all is free. We are still loving what we are doing. Check attached picture to see how it works.

    [​IMG]
     
  3. Freddy Trader

    Freddy Trader New Member

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    Trend line indicator with resistance and support levels for intraday trading system

    Our website which is mostly for intraday trading is three weeks old now and users during this time were more than we expected, nice! Many people ask us, the trend line indicator is not bad and some intraday trading system using it is what you can get, but are there ready recommendations with its use? Welcome, almost ready resistance and support levels strategy is here!

    [​IMG]

    For each of the 28 currency pairs are now automatically calculated resistance and support levels, which form the trend channel. Actually, now it has become available on our website, but algorithms were developed by us long time ago.

    There were many questions during the development, for example, what is the right resistance and support levels, how to calculate and draw it correctly as many different options are possible. But the work is done, we are happy and don’t care is there any other similar methods. In addition, when it is possible, for each pair are calculated not only one, but two formed channels, ascending and descending. And we also have trend line indicator, it is still there!

    It is assumed that intraday trading happening on hourly charts, but if you think that 4H for analysis will be better - let's discuss. In general, resistance and support levels strategy, using trend line indicator can be following algorithm, based on common rules for trade using support and resistance levels:

    We sell into the channel from its borders. Even more effective option – first wait for price rebound from the border (check it using trend line indicator, that’s why we have it) and do your trade after.

    If both (resistance and support) levels are based on one same point on bar chart, then this point is an important level. Just "important", many interpretations, for example, through it can draw a horizontal line and expect price turn near it.

    If the price is inside ascending channel, it is better to buy (support level), same rule for sell if the price is inside descending channel. This is only an option, opinions are different.

    All these rules are basic, remove or add to your taste. Thicker levels are more important than thin - an important resistance or support line is stand on bigger number of bars and some other rules. Frankly speaking, sometimes (but quite rare) I like to draw the line differently by hands, but on the whole machine (one day it will become my personal ATM machine) works very well. Don’t forget to check trend line indicator before buy or sell using levels, it helps.

    So, for those who use resistance and support levels, our intraday trading system may be at least that with which you can consult when making trading decisions. For the rest – channels strategy is simple and works very well all the time. You are welcome to http://trendsonforex.com!
     
  4. Freddy Trader

    Freddy Trader New Member

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    Re: What are the current trading trends on Forex? We know!

    Hello everybody!

    We were closed last week because of server down :-( More, we still face some technical issues from time to time. But the light at the end is so close and new update in few days will finally solve all the bugs.

    News here. Get ready, we are developing mt4 adviser based on trend channels, access to free signals you will have in our forex blog. It will be released in a Week or two. Have a practice with our service before! No-no-no, we do not plan to make it paid, no :)
     
  5. Freddy Trader

    Freddy Trader New Member

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    Re: What are the current trading trends on Forex? We know!

    At the weekend we have seriously updated calculation algorithm and the selection of the most loyal support and resistance lines, which we use to construct two channels - the ascending and descending. The changes affected two important parts of the algorithm - the actual line selection and monitoring of their relevance not only at the beginning of each hour, but also in the process of the bar. Now, if the channel is broken within hour, it will be immediately found a new one. This allows you to put stop-loss closer.

    What “correct” lines does mean? This is the most interesting part. Prior to this update, the choice of correct lines in the algorithm, we relied on the number of control points (on which each line is based), the distribution inside the channel and other factors, as well as we visually checked to see how construction of the channel we like and will we build the same or not.

    In one of the regional office of some broker company, upon completion of the course of technical analysis, a group of 30 people were interviewed. Each of them handed out printed charts of currency pairs from MetaTrader, each received 20 different situations of different pairs. With each situation, there were three copies for different participants. On the printout was just a graph without a price, and other indicators. With pencil and ruler participants were encouraged to build bullish and bearish channels, if any, according to participants, on the chart there. Special accuracy is not needed, no calculations - the usual visual analysis of graphics and their views on the currently existing channels. Reference points for the channel in addition it was necessary to outline that would know how to build a channel.

    After that we have collected all the results and tried to find the basic rules that traders use to build channels. Something we have got, and rules were added to the indicator. For verification, we have built channels automatically for the same situations that were offered to participants.

    So, you are very welcome to check and test our new, deeply updated channel strategy and support and resistance lines here, at trendsonforex.com
     
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