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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

12 - 16
October
weekly
forecast
12 - 16
October

S&P500 Month: it is not difficult to notice that bulls control their long trend support (blue area), but ADX/RSI clearly indicates corrective nature of index growth. The question is only possible scale of the rollback. Another inside bar is possible to be formed in October. Limit of compensa

2015 EURUSD GBPUSD USDJPY
16
October

The daily chart: the pair is in line with our scenario - after breaking the top envelope, there will be a corrective pullback to the middle Bollinger band (1.1286), from where we will enter in the medium-run in the upward direction based on the movement of the euro towards 1.17 and possibly higher.

The daily chart: Bollinger envelopes remain horizontal direction, plus we can see that rush of bulls does not support ADX. Therefore, we can see correction around ​​the middle band (1.5307). This is still a relevant goal - 1.5597 (Upper Bollinger Band) Н4: more localized support in the area of ​​1.

The daily chart: having denoted their determinationto move the price to the south, bears however, had to reckon with the rules of working with Bollinger breakouts - namely, tendency to return to the middle lane. In this case - 119.85, where we will sell the next week towards 116.00 Н4: intermedia

15
October
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October
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October
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October
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