Although i can never be seperated from my quotetracker charts and systems, in forex one is often faced with the Metatrader 4 (MT-4) charting and order entry platform, which is decent and usable, although far from "geeky" enough for me.
BUT a trick i use with the LRC is one i thought good enough to pass on ---------
can be used on any time period chart, but i find it great on the D1 charts (what we call the 3 (or longer) month/daily charts !
once you have one open, draw an lrc from the LOWEST PRIOR POINT on the chart and then draw another from the HIGHEST PRIOR POINT on the chart (if the highest prior point is just a day or two before the present candle, use a high candle from further back )----- WHERE THE TWO LRC's MEET NEAR YOUR PRESENT CANDLE IS THE POINT TO WATCH FOR A BREAKOUT OR BREAKDOWN. (its either gonna go thru and therefore up or down, depending on its direction or its gonna reverse at that point !)
NOW, look at your stochastics, cci and adx and you will be able to tell pretty well what is about to happen !
IF THE SYMBOL BREAKS THRU this resistance point, the LRC lines that have broken thru and are heading up, away from the old LRC, BECOME YOUR NEW TREND LINES, and each day you should draw another LRC from the LOWEST point on your chart to establish new "breakout points" Essentially, by using this modified TREND TRADING system, you can do away with fibs, gann and all the latest and greatest, cause all the points you need to watch are right in front of you !
once you watch a few of these, youll get pretty danged good at entering a currency reversal --- just watch them for a little so that you can estimate well !
enjoy and trade well
Article Written by MP of S Hot Penny Stocks
Rob is the owner of Hot Penny Stocks, and stock message board
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