How To Read A Forex Chart Part 4 | The Best Forex EA Bot

Alan solos here, the passive income guru. And this video tutorial is going to end off the series on how to read a forex chart.

Right? So as you know, we read our chart, we analyze the chart from the largest time frame down to the smallest time frame, meaning the four hour chart. So let's just do that from the four hour chart. And we want to know why a currency has stalled. And how we do that is that we always go to the smaller time frame and you can see why a currency has stalled. So over here you can see that the currency is sitting in between the 34 and the 100, which is the blue line. The yellow is the 34 and the 50 is the purple and the blue is the 100. So if we go back to the H4, you can see exactly the same thing. The price is stuck on the 34, on the blue which is the hundred and on the purple which is the.

Which is the 50.

So you can see why it's not a coincidence, okay? There's a specific reason why the price is actually stuck over. The price is actually stuck over here.

And it's because. Let me, let me call it up for you. Let me show you what I'm talking about.

You go to images, okay? So if you look at this picture, you can see this is what, what people are doing with their orders on specific time frame. So let's say this is the, the 34. So this is an order that a person will place on their, on their MT4. So they'll place an order that when the price goes through the, let's say the 34, the order is activated. So a sell stop is exactly the same thing. It's just in a short. So this is a bull order. This is a sell order. This is a buy limit. So when it touches the price line, so let's say that the price is coming down, it touches the price. Let's say the 34. Okay. Or whatever time frame it's working on and then it shoots back up. So we know that people are actually using these buy limits and sell limits and buy orders and sell orders. I'll show you, I'll show you. Okay. Exactly what it's doing. They have a look. Okay, look at the orders that are going. This is automated. Okay? I'm not doing anything. You'll see that orders will close and then they will. And then they will open against. Just give it a. There we go. So the orders closed, didn't get where. Where it was supposed to go. New orders have opened now, hoping to get to that price, okay? So you know, if you go to, if you cut it FPS. Let's just go to FPS here. FPS.com. this is astounding. Okay? And this is why it freaks me out and excites me actually. So let me just wait for it to load. So it says you open orders and active traders, right? So active traders, there are 10 million traders just on FPS with this. Here it is 631 million orders, okay, those are buy orders, sell orders, buy limits, Sell limits as well as trades that are already happening right now. Okay, so this is just FPS, okay. Now there are hundreds of platforms out there like FBS and everybody's got these buy limits out there and sell limits, which is, it's just quite astounding to actually watch. So, you know, it's something to get excited about to know that it's pretty predictable that if you know what you're looking for and you know what's going on, you can see exactly what the currency is going to do. So here it is. So here's your support over here. If I go left and I shrink it, you'll see there's more support. So yes, also it's either going to come down, okay, what's going to go up and it's going to play in this band as it's been doing. So we know this there, it's going to go back to the touch the blue, it's going to come down. Either it's going to touch the Bollinger band. When it does, it's going to come back up. It's very simple. So let's speed it up so that we can actually show you exactly what's going on. So we're going to look at a one minute timeframe. Okay, so these are the banks, okay, These are banks trading financial institutions, hedge fund managers. These are proper traders that know exactly what's happening in that trade on a one minute frame. Because they don't need to think they know, okay, exactly what they need to do. That's why we are trading on a four hour chart. Because you're still novices, you're not 100% sure, like what, what's going on. So let's see why the price is stalling there. This is why it's stalling. So let's draw a line, okay? This is like so simple, guys. Check. There's your line, there's your support. There's your support and your resistance. So it's actually support at the moment. So the price is being supported. Remember what I said when you stand on the floor, the floor supports you. Okay. If it drops below here, it's only going to go to about here. Okay. And then it's going to touch the Bollinger band and then it's going to spring back up. So let's go and check at the 5 minute charts and see why and what's happening. Here we go. You're on the 200 ma. So very difficult for anything to happen here because you're on the 200 material. So let's change charts. Let's go to a more exciting chart. But there's lots of movements. Let's go to. Yes. So this is the one that I've been showing you guys on the.

On the. Learn to read a forex chart. Telegram group. Okay. So over here you can see, okay. That we've stalled on. This is the. The. The 10. So the 5 is the gold, the 10 is the blue. And it seems to be playing here. So we're still in a downward trend. So if we expand. If we just expand. Yeah. You can see this massive downward trend. Okay. Little bit up down never closes above the atma. Okay. It's always like just touching. If it does, if it does close on the atma, it was a false positive. You got out or you got in, you made a mistake. You got back in over here, you still went south. Okay. So that doji was a little bit of false positive. We thought it was going to be a bullish trend. But I mean, even over here where there is a hanging man. Okay. So this is called a hanging man over here where you can see this is the man and his legs are hanging over. It's not like a proper bullish trend. There's no engulfing signal here. Like another candle that is engulfing this candle. So if this was a full body candle and it closed above the.

Atma, that would be a proper buy signal. But the fact that it actually turned into this is a doji and then a hanging man and then almost.

A hammer. You can see that there's. This is not a proper bull signal. Okay. So there would be no point in actually going long here when your signal is so weak. There's no. There's no real confirmation. The candle needs to be full. It needs to be like an engulfing candle. So like. Yeah, yeah. Is a. Here is a. An evening star. Okay. Where you've got this engulfing candle, engulfing the red candle. Okay. It's signaling that there is going to be an uptrend. But it's not significant. You've got to wait for it to close above the atmo. And the reason it's not doing anything is because. Here's your 200. So it can't, it's being held back by your 200. There's lots of orders on that 200. Here's your 200. Here's the cross of your, of your 34, your 50, 100. Total chaos on this chart. And we know that it's an absolute over here, especially when it's just going.

Into the downward trend.

Okay, so if we zoom in over here, let's go back to the one minute chart and let's see exactly what's.

Cooking on this chart.

So yeah, is your line.

It's fast. You've got to keep up. Okay, so here's your support and your resistance. You can see it. So it's been supported. Possibly going to come down to the Bollinger band, okay. It's going to touch the white line and then it's going to spring right back up to the, to the atma. So it's, it could be here. Let's have a look there. You can see there's lots of, there's lots of support. Yeah, support, support, support. It's not going further than this. It's not, it's not going any further. No chance. Okay, you can, you can with, with like a lot of certainty, you can say that. There it is. So bounce back up. It's going straight back to the atma. Okay, so we'll go back up. Then we'll come down and just carry on doing this. Okay. Until either the pools and the bears, when. And you never go against the trend. So you can see up to the last like minute. This, these are minutes. So one hour is about three hours since 4 o', clock, 4 till 7. So for the last three hours it's been trending over here. Okay. But let's find out why. Okay, so last three hours it's been trending on this, on this line. So let's go to the five minute chart and find out why. There you go, there's the 200. That's why it's been trending in a sideways movement because it's hit the 200. Okay. On the five minute chart, there can't be movement. It's now orders. So orders, orders, orders, orders. All these 10 million orders, okay, being executed hundreds of thousands, possibly millions of orders. These buy limits and sell limits. This is what I'm talking about. Let's go back there. Over here. These orders, they all being activated now. So this is a supply and demand thing, okay? So as long as you know that you can. You can trade with confidence without, like getting freaked out. So what's happening is, is that these orders are being activated, okay? Some people are winning money, some people are losing money. And it's a game between the Bulls and the Bears, and whoever has the most orders will win. It's very. It's very simple. So. And also. Yes. So people are trading off the stochastics. Yeah, we're in over, over overboard, going into overbought. So then it comes down and it comes into oversold. Then it comes out of oversold. So people are trading the stochastic. Some people are trading the stochastic. Some people are trading the moving averages, okay? Some people are trading the rsi.

Some.

Some people are trading pitchforks for Bernaki. Okay? But it's just. It's just orders. But we need to focus, okay, on our moving averages and the atmo. Okay? So now we know what the problem is on the one minute chart. We know that it's not going any further down. And if it does, as I said, it's going to go to the Bollinger band. Okay? Here's the limit. It's going to touch the Bollinger band and it's going to spring right back up, okay? We know that because if we look at it on the five minute chart, it hits the 200, hits the 200, goes south. Gonna hit the Bollinger band over here. Let's wait, check. It'll hit the Bollinger band and then retrace.

Come on, little buddy.

Come on, little buddy.

There we go. Retraced. So it's almost touching the Bollinger band. Here is your support over here. Boom. Back up again. Okay? It's crazy. I mean, it's just like. It's like it's taking candy from kids. It's so simple. Okay, so let's go check out the 15 minute. What's happening on the 15 minute? There you go. You're on the blue. So what is the blue? It's the 100. So we stuck on the hundred. So your significant time frames, okay? 34, 50, 100, 200. Those are your chart. Those are your moving averages where everybody's trading on them, okay? The western world, the whole of America and Europe, okay? And Australia, they trading on the moving averages. Okay, we're not doing that. We've been clever, okay? We're using a 400 year old strategy called candlesticks. Okay? So if you learn the Candlesticks. And you learn the doji and you learn what a harami is, and you learn what a spinning top is, and you learn what these 15 other reversal signals. You're going to be in a very, very powerful position to make an educated decision of where the currency is going. So what are we on? We're on a 15 minute time frame where we stuck. Here's the purple, it's the 50. Okay? So here's the 34 is the yellow. Here's the 50 years, the 100. It's so close together like nothing can happen. Okay. Absolutely nothing can happen because all your moving averages are so close together. How can anybody make a decision? So all you've got is these, these orders that are going in and out, in and out, in and out, okay. And it's like there's total chaos in the markets. Let's go to another time frame. What are we on? We're on the 15th, so let's go to the 30 minute timeframe. I know I'm going fast. Okay, so this is being recorded so I can upload it to YouTube so that you can go and check it out and go and watch the chart on, on whatever chart that you watching and try and like, you know, like, figure it out. Okay, so, yeah, so here we are. Yes. Here's the 50. Here's the 34. Here's the Bollinger band. What's it doing? Yeah, we've got support.

Let me move the support.

Let me get a support.

Well, I have a support line. So let's get a support line. There's a support line. There it is.

So you can check. It's coming down. Yeah. Okay. It's coming down. Yeah. Why is it coming down there? Okay. Why is that support? We know what support. Because we go back to the one minute chart. Okay? There it is. We're in chaos. So if we condense it, we're in chaos. It's in a sideways. Sideways. It's consolidating. That's what a sideways market is, okay. Nobody knows what to do, okay. Because all the, all the moving averages are so clumped together, okay. That there's. Everybody's getting freaked out. The only ones that are making money, okay, the hedge fund managers and the, the banks, etcetera, And I'll show you why they're making money. Okay? This is classic. So if you take, if you take the, a trend line. So the trend line.

Let's do that again so that you.

Can focus the slanted line, this line. That's a trend line. Okay, so you take the trend line and you can check. You put it on your lowest point and you draw to the top. Okay, you can check. It's 18 pips. Look in the left hand corner. Look there. It says 26, 25. Can you see it says trend line 2817. That's 18 pips. So if you trading, okay, $20 million. 18 pips.

You cooking brew.

Okay, you're making a lot of money, a lot of money. You don't have to have a lot of movement. Even if you're doing okay, five or six pips. And you know what you're doing, you're scoring five or six pips. Five or six pips. So it's five pips. Five pips here, ten pips here. Ten pips here. Ten pips here, ten. Ten pips here. Five pips there, Ten pips here. Okay, at the end of the day, what time frame are we working on here? So let's check it out. From the time frame of 3:30. So from 3:30 until 7:00', clock, it's.

Like four and a half hours.

You've made like a hundred pips. What a mission. Okay, like a hundred pips. I'd rather trade with my potential. Less stress, less sweat, less brain trauma, less brain tumors. But at least now you know why. Okay, the.

Why it's stalled. Okay, Let me get rid of my.

Moving average, my trend lines. Trend line gone.

Okay, so let's go to another currency and we can go check it out.

In another currency and you can see exactly what I'm talking about. So what were we checking?

Ej.

So let's go look at gj.

It'll be pretty much the same because.

They'Re both in pairs. So let's check it out. Let's check the graph.

So let's go to a one minute chart. So we on a one minute chart. What's happening? Okay. Oh, we've broken the blue. We're going to go up to the purple. Check. We're going to go to the purple and then we're going to retrace down. If we break the purple and the yellow, we're going to go up to the Bollinger band. Okay, so yeah, this is a buy. We're in a bar market. Okay, so the, so the banks have bought. Now there's your close of your first candle above the atmo. Okay, so we're now in a bar position. But it's on the, it's on the, it's on the blue. So we found support on the blue, which is the 100. There we go. We've got traction. So it's going up now. The bulls are in control of the market. It's like horse racing.

Okay. Going up. Okay. To the. To the purple, which is the 50. And the yellow is the 34. And it's going to hit it, and it's going to retrace. Okay. So there's the new minute. Your new minute candle is formed. Okay. What's it gonna do? Red candle. Okay. And if we break the purple. Okay, there we go. Touched it and retraced. It's ridiculous. It is predictable. Okay, back to the 100. Okay. They'll go back to the 100. Or will go. It'll trend a little bit further to just above the 34. Why? Okay, I'll show you why. Why hasn't it broken the. The 34 and the. And the 50, the yellow and the purple. Let's go and check why. So we need to use the past as a guide.

That is why. Here is your support.

Here is your resistance. There is your resistance. The history repeats itself. Okay. Just look to the left and you can see. Exactly. So let's zoom in and let's check what's going to happen.

It's a minute. Charts and wait a minute. And we'll check.

So. So there's your. There is your. There's your. It's now a Doji. So there's no sentiment. It's a Doji. Get out. There's your Doji. Get out. Okay. Ah, it's gone up. Okay, but is it going to go further? Is it going to touch the purple and break through the purple? No, it's not. Isn't that sad? It just touched the purple like we said it was going to do. And it's getting out. So we know that on the Doji, we get out, if we make a mistake. We know there. We've made a mistake. It's broken the purple. Okay, so it's possibly going to go and hit the Bollinger band. I guess the bulls are in control. Yes. So, yeah, false positive. Okay. You can get back in this trade. So you get back in here above the purple. Okay. We know now that it's going north. It's going north to the next. To the next.

Where is it?

Let's go and have a look there.

That is your next point over here. There is your next point. And if it breaks that point, then your next point is up here.

Let's go. Condense it and let's go up here.

There's your next point. Okay. But I think if we enlarge it.

It'S already still going.

So there it's touching the Bollinger band very close to your Bollinger band.

And now it's possibly going to retrace.

So we can see exactly like what it's doing. So again, if you see and it is possible that you're going to get a false positive, no problem. At least you protected your capital and you lost a couple of pips. So if we enlarge it and we go and see. Okay, you need to learn the rules of forex. And the main rule is make profit. Second rule is protect capital. Third rule is make profit. Okay. Fourth rule is repeat the above on and on. So, yeah, here's where you got out. Okay. And there is possibly where you. So you got out and then it broke above the. The 50, the purple 50, and you got in here. So how many pips did you lose? Two pips. Look where I'm looking. Top left hand corner. It says there 17. Okay. Which is. You leave the last number. It's not 22 pips, it's 2 pips or 2.1 pips. So it's not like it's smashing that you lost money here, but as you can see, check it out. So it broke above the 50, went to the Bollinger band, retraced that. Excuse me, retrace back to the 50. Okay. And now it is. We got a doji again. It's like sentiment is lost because we've got this, this red candle. So let's just wait and see what happens. Let's go and see what's happening on the five minute chart to see exactly what's like, so stalling there a bit. Ah, there we go. There's the 50.

Okay, there's your 50.

So it's on your 50. Breaking, going down, going up. Here's your resistance over here. Right? So I'm going to unmute you and you can ask questions.

I know how to do that. Participants.

Okay, does anybody have any questions? You can put your hand up or ask a question or chat in the chat box and I'll unmute you and.

You can ask a question. Anybody want to chat?

Are you getting this, guys?

Yes. No. Five seconds and then I'm closing the Zoom call. 5, 4, 3, 2, 1. Cool. Thanks very much for joining me. I hope it made sense. I hope you enjoyed it.

I got a question.

Okay. Okay. Makes sense. Okay, so that's the end of the call. Hope you enjoyed it. I'll upload this to YouTube and I'll add it to the group of Learn.

To read a Forex chart.

I hope you enjoyed it.

Have a great evening. We'll speak soon.