Volatility Swing Trading Method for Currency Trading.

[muraleedharan]

GBP/USD Monthly chart is attached below for the reference of the readers.The Monthly reading on the chart is as follows.HP 1.5372 LP 1.3505 CP 1.4537 OP 1.4701 Pivot Point is 1.4471 The 20 SMA is 1.8893 .This month has a bearish close.The USD is 164 pips stronger than its last month close against Cable.The goal for the month of February is to be set before the start of the month.A goal of 400 pips net earning in the month of February is a reasonable goal.If you beak down this goal in to weekly, you have to earn a net of 100 pips every week.Setting up a measurable goal and evaluating your performance against the goal and fixing up the weaknesses is an important exercise for improving your trading skills.You should also evaluate your system performance against your goal.The first goal as a trader is to protect your capital and the second goal is to increase your monthly profits. Good trading to all my readers.Muraleedharan.

[muraleedharan]

A weekly chart of GBP/USD as on 31st January 2009 is attached below for the reference of the readers.The Price closed below 20 SMA reading of 1.5666 and 20 SMA is slanting down.Hence the down trend is intact.This week made a close forming a piercing candlestick pattern..This pattern has appeared after a long down trend and thus a trend to reverse.This signal signifies a short term reversal or retracement is highly probable.Since the trend is down we will ignore this pattern for the time being.We will only sell rallies in this market at the appropriate time taking signals from the patterns.Good trading .Muraleedharan