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The US Dollar versus the Singaporean Dollar

Profile photo of Nuno Lampreia – Forex.Today by Nuno Lampreia – Forex.Today
2016-01-21_00-06-09usdsgd

2016-01-21_00-06-09usdsgd

Dear Traders,

I chose this chart today to ilustrade how it can be useful to follow price with some simple lines.

This has to do with the fact that I believe that trading should be as simple as possible to avoid analysis paralysis.

Sometimes we might complicate things and would be better of to let price tell us what to do.

You see that price has been moving sideways for eleven days now. So we simply plot a line connecting the highs and then the lows of these candles.

These parallel lines are called a flag pattern. They trap price and we as traders are well off waiting for the outbreak.

The pattern tends to more often the not continue in direction of the prevailing trend. In this case bullish.

But we will let price tell us what to do.

So please note the upper boundary of 1.44265 and the lower boundary of 1.43290.

It is best to wait for the candle to CLOSE outside the upper boundary for long trades or below the lower boundary for short trades.

I hope this helps. Having the highest respect for your effort that you dedicate your trading, I wish you the BEST OF PIPS.

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