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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

27 February - 03
March
weekly
forecast
27 February - 03
March

S&P500   Monthly chart: index approaches new local high on week upper Bollinger band (2384.5). ADX is edging. That can indicate either preparation for new strong mid-term upward shot or reversal preparation. Trend scenario has an obvious advantage over reversal one. Weekly chart: here

2017 EURUSD GBPUSD USDJPY
03
March

Daily chart: ADX is growing and trending, so bears may at any moment try to attack lower Bollinger envelope border (1.0470) aiming at 1.0352. The pair is not likely to go up because of the downward trend. Н4: here we see increasing pressure on lower Bollinger envelope (1.0488-1.0550). This corrid

Daily chart: ADX is very aggressive, at any time now the pair may start declining at accelerated pace towards 1.2142. Н4: here we are observing locally oversold market and corrective ADX. Lower Bollinger envelope range is not likely to change during the day (1.2204-1.2338) Н1: more localized cor

Daily chart: strong resistance level around 114.66 (upper Bollinger band)may face buyers' pressure, it is evident because of ADX growth. Н4: beneath we have entry to bullish Over&Under pattern (111.81), considering overbought chart we may see downward correction towards this level. However, w

02
March
01
March
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