Go to weekly chart .

You can now draw two trendlines one that is horizontal joining the highs of last 6 weeks and draw other trendline joining the lows of the last 6 weeks.

Now you can see an ascending triangle there  .

What do you see now?

We are having a break of it from a lower trendline  which gives us a great trading opportunity .

We must wait for a pull back to daily trendline to enter in this trade .Once a pullback confirms that price has nicely broken and retested the trendline then we hold for this trade till we hit first target of 1.1900

This is great trade with small stop loss and large take profit target!

Happy trading..

So do use  COT for forex too?

Ok. Some of you may ask “what is COT?”

COT stands for Commitment of Traders .

This is released every weekend .

As against the stock market the forex market being decentralised it is really difficult to know the actual value but the values there are shown by the bigger traders bot commercial and small non commercial traders at the bigger exchanges . For example i see COT report of CME i.e. Chicago mercentile exchange.

Remember it  ? Have you heard of it before?

Do you know Turtles or rea book on turtle trading . If your answer is yes then you would remeber the CME as mentioned in the book. CME i one of the biggest exchange in USA.

So after reading COT you get an idea over weekend as to which pairs are gross long and which short looking at number of longs and shorts both by commercial and noncommercial traders.But since as mentioned before forex is decentralised the positions may differ over different exchanges.

So you can look at COt to get just a part of idea on understanding the longs and shorts by major traders .

Happy trading!

So whats going on this weekend all over the world?

Last week we say all indices rallying to new highs from asian ones to american ones.

April is month of declaration of Q 1 i.e. first quarter earnings. Anything is possible this month.

Well in Indian markets there has been a great rally over last month . but there are some news of job cuts from Infosys coming out over the weekend. Also some companies earnings are on the side of showing there lowest ever which may affect the markets on a big way.  There is large fiscal deposit in Usa and many other countries due to big or should i say biggest stimulus packages given out. This are looking for a reentry of bears . Just have to wait for the price action to confirm. So wish you a great trading next week!

So how to determine the trend?

There are various procedures or methods traders use to determine trend.

Some use ema’s like 365 , 200 to determine the trend and they are useful .

Above 365 ema on daily shows us long term trend . The definite guide to confirm this is look at the daily , weekly  and monthly chart if the price is showing the move from upper left hand side of chart to lower right hand side we are in  bear market and if the price is moving from left lower side of chart to right upper end of the chart we confirm that the market is in bullish trend.

Then on lower charts trade along the trend  and you would be making money .

This is easy way to trade along trend and make money in forex.

And to everyone’s surprise they have come better than expected after such a long time .

This has helped DOW gain today again though the daily bearish channel has not been broken yet .

GBP official rate statement also came out today and as expected the rates have remained unchanged .

Now from tomorrow being Easter holidays beginning the trading till monday US session is likely to stay in a ranging mode with big trader banks taking break .

Eur has weakened all over the place against almost all currencies  continuing its 3 days bearish journey putting itself at the PPZ now .If this holds we will see the upmove to test the 3 day back tested high on euro .