The Professional Chart Setup

In this article I give three technical indicators used by processional traders.

In order to navigate a ship you need to have a compass. In order to Charter a plane you need to observe your instruments. Its no different in Trading the foreign exchange market you must have all your indicators clearly on screen, so that you can see how far the market can move and also prepare timing for precision market entries and precision market exits for Maximum profitability.

“Foreign exchange is money changing against time”

The Banks are major player in the Forex Market and take up 80% of the Liquidity, with ALL major forex players allocated in or through UK.

Because of this we need to avoid side ways consolidating markets and focus 80% of our attention on opening positions inside the open hours of London Market.

1. LONDON OPEN MARKET INDICATOR

In the screen below you will see Green being London Market open and Dark Green USA Open
The green ends at the close of the London work Day 5-6pm.

- in the above chart you will see 8am Chart turns Green this is London open Hours
- (lower x) represents Bounce on Weekly Trend Line
- (Higher x) represents Bounce at 8am of the London Market Open

This is where the highest volume in the market is and is the best time for day traders and Scalpers alike to make profit.
It is also the best time get into risk free trades I.E: By getting in early hour or two before London open at the bounce of the weekly and Moving Stop to Break even after London open
This is an excellent way to trade and create huge profits to the prepared trader.

 

2. DAILY TRADING RANGE

Every Pair has a different average trading range of total possible pip movement for each day.
In the top left hand corner of the chart setup you will see the Daily Trading range in figure mark x below. The Daily Trading range is calculated by professional traders over a 15 Week period.
The Daily trading range is essential for professional chart setups as it gives an accurate reading for the amount of pips the trader can make from each Currency Pair.

- GBPAUD MARKET AVG DAILY: In the above figure GBPAUD has a Daily trading range of 140.9 Pips
- GBPAUD Offers excellent amount of pips for day traders

It’s good to note that in the event of News days the Daily trading range can move 1.5 times the market AVG daily.

3. CROSS REFERENCE TREND LINE

To Successfully trade professionals cross reference the larger trend lines over onto the smaller time frames.
GBPUSD:

- Red Line represents the Daily trend Line taken from the daily onto 15minute (Automated Trend Line)
- Gray Line represents the Weekly trend Line on 15 minute Chart (Automated Trend Line)
- The MARKET RALLIES after bouncing on the weekly and daily trend line

EURUSD:

EURUSD RALLIES up towards the weekly 89 Pips as per the daily trading range - 19 March above
EURUSD DIPS downwards further 100 pips next day, after bouncing at the weekly - 20 March above