There are over 50,000 systems out there that "teach" you how to become good at the markets. I only follow one. My own system..
Now I am here to show you what my system consists:
MACD, Volume/Volume Surge, Price Direction, Trendlines, J-Lines.
As posted earlier, I play the mini Euro FX June 07 Contract. I use MACD to confirm directional shifts. I use trendlines to confirm breakouts or failure to breakouts. Finally, I use colored volume to determine the bull/bearish dominance. Here is one of my first charts on the Euro - thirty minute time frame.
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http://picnac.com/images/7966Euro_FX_Jun_07.jpg"
Now, in this chart, a few things are going on here on May 5th our most recent time frame. MACD Indicates sell and lesser volume(little guys may start moving this price down). My inclination will be to short this come monday morning and hold for the day and eject before 4:00 p.m(time mini euro fx on cme closes)
I drew in the J-Lines(My personal expectations on where I'd like to see price go using support and resistance) and if price goes through the top J-Line, that will confirm my short sell decision.
Price can go up, sideways, or down tomorrow. The price is starting to make lower lows lately and we could be in for a reversal or indecision. Either or, I would start to bet my money on the downside.
I was reading on euronews.com that the Euro has been stronger in its dominant countries more than ever. However, you will see sometimes in these markets good economic numbers and good expectations, but incongruent price movement. Why is that? People can be unpredicatble. We can have the best economic numbers out there on the Euro. That won't stop price from reversing. Also, dailyfx.com is reporting over there that there is a lot of overbought pressure for the past few months and things will need to eventually change shift. This is why I am starting to bet short on the mini Euro FX. I will be going short 2 contracts tomorrow and let's see how this stacks up..
We are waiting for either increased green volume to take price to its next level or red volume to prompt a reversal point in this trend.
Lastly, I also notice that the longer the time frame the more accurate the signals are. I do not like to trade tick charts, 1 minute, 5 minute, and anything of shorter time frame. My preferred time periods are 30 minute, hourly, daily.
PS: Ignore the top RSI / SMA cross over chart. That is something I'm testing right now.
