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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.

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

20 - 24
20 - 24

S&P500   Monthly chart: here situation doesn't change. ADX is ramping up, oscillator is showing divergence, weekly upper Bollinger band (2427.6) is still not broken. All we are left to do is to look for possibilities on smaller time frames. Weekly chart: there is a strong valid resistance leve


Daily chart: the pair is in the middle of upper Bollinger envelope (1.0654-1.0840), ADX shows weak and corrective trend. So, today we'll expect either breakout of upper Bollinger band (1.0840) or correction towards middle Bollinger band (1.0654). Н4: there is a strong support level on lower Bolli

Daily chart: bulls didn't manage to reach upper Bollinger band (1.2590), and we will see on Monday whether today session will be closed with inside bar or not. However, it is clear that if we see bearish inside bar, the pair may start dropping towards 1.2094 (lower Bollinger band). Н4: support leve

Daily chart: bears were sure that they triggered big drop but faced bullish resistance (however, that it was profit taking). ADX shows active trend, that's why it's unclear where the price will go (one of the scenarios is correction up to middle Bollinger band Bollinger band 113.07, see blue arrow).

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