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Forex Technical Analysis: Trend potential

Presented method is the method of technical analysis, which statistics of accuracy is within the range of 60-70%. It is based on three key indicators (Bollinger bands, ADX and RSI) as well as on price levels and price action signals. Analyst Alexey Panasenko is the method's author.

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Forex Technical Analysis: Trend potential

Forex technical analysis helps to answer the questions: How to interpret Forex rates? Buy? Sell? Close a trade? Take profit or let it run for some more time? Will it face reversal or go trhough correction? Accept a loss and “flip over” or wait for some more time? Finally, how to define Forex trend?” All these questions drive a trader (mainly beginning) crazy, if he does not know the answer. By the way, who will dare to claim to know the answer? Forex exchange rates are cruel towards one's self-confidence and arrogant manner.

Nevertheless, it is subject to regularities and daily techical analysis forex. There are plenty of strategies on Forex trend lines. We are not so much interested with the direction of fx rate along major lines (this is interesting too, though) as with the Potential of the Forex trend. The main purpose of our Forex technical analysis report named "Potential of Trend" is to find if current price goes through correction either we face a trend.

Example of Forex technical analysis

12 - 16 December	weekly forecast 12 - 16 December Weekly Review. S&P500, oil, gold Monthly chart: index is in its historical high right now and it is not clear how high it will go. However, ADX does not treat current moves as a trend yet, so soon a reversal or correction will be possible. Weekly chart: breakout of upper Bollinger band is a distinct bullish signal. Now a rollbac More
2016	EURUSD	GBPUSD	USDJPY
16 December	Bulls have correction chances Daily chart: as we can see it's hard for bears to hold their ground. Oscillator shows bullish convergence (it didn't repeat the price's shift for new lows), that means buyers have a chance to force correction towards middle Bollinger band (1.0606) Н4: more localized resistance level is 1.0557 (mi More	Two scenarios for today Daily chart: lower Bollinger band (1.2322) is not touched yet, so buyers waiting for correction should be careful because pair can touch such levels impulsively. Н4: ADX/RSI parameters are correctional. Moreover, bulls managed to make inside bar in the area of lower Bollinger band. That makes it po More	A touch in 119.05 and decline? Daily chart: upward correction is close. Upper envelope is broken, indicators are in their extremes and oscillator shows bearish divergence. Н4: level of possible high is 119.02 (upper Bollinger band and round psychological level). From here the pair might start declining towards support levels 1 More
15 December	Decline continues	Look for selling possibilities	Unrestrained growth and possible correction
14 December	Moving up	Bearish O&U	Two corridors for Yen
13 December	Look for upward entry points	Upward potential	Drop to 113.09
12 December	Bullish Potential	A Flat Day	The pair is determined to go to 116.69

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Forex Technical Analysis: Trend potential

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