How To Read A Forex Chart Part 3 | The Best Forex EA Bot

Alan Solosh here, the passive income guru in this video tutorial explains the last steps of analyzing your moving averages. And our next videos are going to be about candlestick technical analysis.

Right, so we still analyzing the Eurocad chart and we said yesterday that the stock would turn roughly. Let's go back to the 30 minute chart where we're looking at the head and shoulders. So there's the head and shoulders over here, head, shoulder, shoulder. And kept on doing that continuous sideways trend. And then we opened up this morning and it went south and now we are definitely trending in the upward direction which is according to the head and shoulders.

Formation and analysis. So there's a couple more things that I want to mention which gives you a clear indication of the currency going in a northerly direction. So let's start with the day chart and we'll continue from there. So the chart, the currency opened this morning over here. And as you can see the trend for the day was well below the red and white 8 exponential moving average, which gives you the sentiment that the trend for the day is still going to continue going.

Bearish going down. So as you can see here, the candle is moving very far away from the red and white line. Now here is a key point that you need to understand when with the 8 exponential moving average that the candle will always come back to meet the 8 exponential moving average. Which is good news for us because the take profit for our currency that we're looking at at the moment is round about there and is round about there. And the currency is actually going to come back to about here and we're going to land up in a profit with this percentage currency. So let's go and look at the four hour chart. And as you can see here, the candle has bounced well above the 8 exponential moving average. As you can see it stopped over here on the white. This is the mid of the Bollinger band which is not a serious line to be stopped at. So we're expecting the currency to go further north and to actually get to about the yellow line over here. So let's look at the next moving average which is, sorry, the next time frame which is the H1, the one hour chart. So let's make a little bit smaller so that we can see what's happening in the history. So this is a very key point over here. This is a point of resistance. Remember we spoke about resistance. When you're touching the roof, you can't go through the roof because the roof is resisting you from going through it. So we're hoping that this resistance line over here becomes a point of support. If the, if the candle goes above this, this point and actually closes and a new candle form for forms above this line of resistance, this line of resistance becomes a new line of support and we can expect the currency to go north to the blue, the blue line, which is the MA100, which is a quite an important moving average according to the technical analysts. Okay. Which is well above our take profit over there. So let's look at the next moving average and see also why we stopped on that white Bollinger band and that point of resistance. So let's look at the 30 moving average and as you can see, we're also on. There's the, there's that point over there. But we're very close to the outer band of the Bollinger band. Now normally what happens is, and that's probably why we also being stopped there. So it's two, two points of contact. We've got the point of resistance over here and we've got the outer Bollinger band which is touching over there. So what will happen is when it touches the Bollinger band and normally comes down about 50%, maybe 60% to the 5, the 5 moving average and then it will break forwards again over here going above that moving of this line of resistance touching the white Bollinger band over here, coming down and then we'll carry on going north.

To our take profit and to that blue MA100. So let's look at the 15 minute chart. That was the 15 minute chart. Let's look at the 5 minute chart and see why on the farm, what's happening on the five minute chart again, still stuck on that line of. Obviously on that line of resistance, there's the white Bollinger band. So we've got three confirmations now, three time frames showing the same thing. And the one minute we're going down to the white. This is the mid of the Bollinger band will probably stop there. If it doesn't stop there, it'll go down to the yellow. And if you look at the bottom of the screen here, we see that the yellow is important, an important indicator. Where most technical analysis analysts have the moving average, the 34 Ma on their charts. And we will have a lot of orders, buying orders and selling orders at this point. And hopefully we'll have more buying orders and selling orders. I presume we will have because we're now in a bullish trend and people would have executed their bullish orders round about here. Above and below. And the currency will then carry on trending in the northerly direction. So I'll carry on with this video in the next 20 minutes and show you what the result is so that we can have confirmation of, of the moving averages. Another point to note of the, of the, of the change in direction is these dojis over here. Now a dogee is basically.

A long wick with a very, very small body. Gives you an indication that the change in sentiment of that currency has taken place. The bulls and the bears don't quite know what to do yet. And if, if there is a doji at the, at the top of above the 8 moving average the 8mA, you can expect the, the currency to reverse, which it has done and come back to the 8 moving exponential. When you see a doji it above the 88 exponential ma, it's time to take profits and wait and see what happens to the currency. You can always jump back in. If you made the wrong decision. You can always jump back in. And if you notice here, it's very, very small of a change in, in pip value. You've only got this is the Eurocad. So you've got, let's have a look at it. It's five pips over here. From over here, 35 to 45, it's 10. It's a 10 pip move. So it's not major. So if I had to actually get out, I only would have lost 10 pips or five pips. I would have gotten back in over here and then carried on with my, with that bull trend. And then obviously there's that there's a bearish harami. I'm going to explain all these candles in my next videos. And you can see it starting to come back again above the 8 Ma. Okay, so I'll carry on with this video in the next 20 minutes and show you exactly what has transpired. Right. So as you can see on the 30 minute chart, it's testing that line of, of resistance, making it a line of support. We've gone above, we've gone above. Let's try and get that. There we go. Which there is the last point that it hit, which was two days ago coming down. It'll, it'll close about here, maybe over here and then it'll start going up again and it'll go above this line of resistance, making this line a line of support. And then we will go into profit. So let's look at those trades and as you can see, we're about 11 pips away. So here it is. The take profit is 635 and we're on 53. So it's 53 minus 65, which is. What is that? It's 10 pips. We're 10 pips away from, from going into massive profit. Nine pips now. And can't wait to see what this is going to look like in the next few minutes. And I'll resume the video when we get on to the next candle and break above the line of, of support. So as you can see here on the 5 minute chart we still way above the, the 8 ma touching on the 5 minute ma over here. And so we still very much in a bull market. There's our line of, of resistance over there. So we hit it five minutes ago. Now we retracting back to the five minute and we'll carry on going north in the next few minutes. So let's look at the one minute chart. One minute chart. We're below the, the eight exponential. Hit the yellow line which is the 34 retraced back up to the mid Bollinger band and we're hovering in this area. But I'm not too concerned about the, the 1 minute. I'm more concerned about the 5 minute where we still way above the 8 exponential moving average. Let's look at the 15. You can see the 15. We're very high above the 8 exponential. Now as I said before, when you're high above the 8 exponential usually what will happen is the currency will retrace back down to that 8 exponential hitting a new time frame in the next. This is a 30 minute chart. So 30 minutes it's got to come down a new time frame will start. It'll touch on the 8x on the, on the 8 exponential and then carry on going north again to touch the Bollinger band. And so it'll continue in that formation. Right. Really exciting now. So as you can see the next candle has formed above the line of.

Resistance possibly forming a new line of support. So if the next candle closes above here and we test down to this line of support resistance and it doesn't go through this line. This line has now converted from a line of support to a line from a line of resistance to a new line of support now supporting the new price level. So there been price action here and we're now going to continue going up. So let's have a look and see at the trades and see the take profit. So I think we've taken, we've taken some profit there. We have. So a lot of The Eurocads have taken profit and so the profit for the day there was $244, which is absolutely phenomenal. So if we go back here, the next line of the next line that we're looking for for this take profit for these massive trades is the take profit of 1.50768. So it's 1.50768 which is about 16 pips away. So let's turn, turn the.

Turn the phone and let's look at it from another angle. Let's go down to the 30 minute. Let's go down to the one hour and let's look at the, the take profit. So the take profit is over here. We 16 pips away. It's dropped below the line of that line of support. Let's go back to the five minutes and see if it has actually. So it hasn't gone through that line of, of support resistance. It's testing that line very carefully. Lots of buying and selling orders are going off now and we'll see who is, who's going to win this battle between the Bears and the Bulls. As you can see, we're well above, we're not so far above the the 8mA. So possibly test down to the 8mA and then carry on going up. Let's look at the one minute. So the one minute is we are testing the, the other the midline of the Bollinger band and if we continue going south, we will Then hit the MA34 over here. Testing that line and then retracing back to the 16 pips. I think that Eurocad is finally turned and is now on a bull run and everybody can expect to to take profit and have a massive passive income day due to the Forex ninja bot. So let's wait and see what happens. I'll resume the video in the next couple of minutes and show you.

What has transpired with the price action. If we've gotten support on the new line or if we're still hitting resistance. Right. So it appears that the line of resistance has now become a new line of support and the currency is definitely trending in a bullish, bullish momentum. And we've hit the one take profit. We're waiting for the next take profit to take effect. Let's go and look at what are we on a five minute chart. Let's look at the 15 minute charts. As you can see, same thing over there. We had a slighter doji over there which showed sentiment of the change in direction. The, the long wick came down to the five minutes, I think. Yeah. Came down to the five minutes a new candle opened way above the doji and the line of resistance, new line of support. And we're now heading in a northerly direction to the take profit. And we are, I think we are 13 pips away. Let's go and check it out. Right, so we are approximately 768 minus 663. So what is that? 13 pips. 13 pips away from this account going into profit. So if you turn the phone sideways again, you can see that we've definitely gone into a new line of support, which is really exciting. So as you can see, guys, the moving averages are very predictive. They're a great indicator that gives you insight into the direction of the currency. So instead of making emotional decisions, learn how to read a chart. Learn how what these moving averages actually represent and how they can benefit you so as to make profit instead of losses. I said to you that the next couple of videos, there'll be a full video series on candlesticks. Understanding candlesticks and how the candlestick and understanding what candlesticks are, what their formations are, what their patterns are will change your your perception of trading and will put you in about an 80 to 90% profitable situation every time you trade. So I hope that you found this video tutorial and series interesting. If you like this video, please mouse over this video. If you on my website, on the top left hand Corner, there's a YouTube icon. Click on the YouTube. I if you're watching this on YouTube, scroll down below the video on YouTube. There's four things that I'd like you to do. One is click on the subscribe button. Two, click on the bell icon to the right of the subscribe button. Below that is a thumbs up. Give me a thumbs up and in the comment section leave positive feedback as well as your bitcoin wallet address because I give away 0.005 of the Bitcoin every single Friday and you could be the lucky winner of that prize. So good luck for that and I'll see you on the next video.