FX103: Forex Trading and Concepts | Zaheer Coerecuis | Skillshare

FX103: Forex Trading and Concepts

Zaheer Coerecuis, Forex Trader and Philantropist

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5 Lessons (1h 2m)
    • 1. TOFS: Forex Introduction

    • 2. 14: Forex Indicator

    • 3. 15: MACD (Moving Average Divergence Convergence)

    • 4. 16: Stochastics Oscillator

    • 5. 17: RSI (Relative Strength Index)


About This Class

This course is tailored for the novice with little to know Forex knowledge and experience. In the course we elaborate and make understanding of all the Forex concepts, terminology, software, brokers and lingo used within the Forex Market Industry. You will acquire the beginner level skills of Forex trading that will groom you into Intermediate Forex concepts. Upon completion of the FX Beginner course,will you be capable of placing trades with confidence within the live market using my two proven strategies to earn money. You will also gain my full support throughout your Forex Career through social media groups.  

So join this class with an open mind and eagerness to learn Forex and you will enjoy the earnings in the long run. 

I am passionate about Forex and it is important to me that students fully and thoroughly understand Forex.


1. TOFS: Forex Introduction: are you interested in far extreme. Do you want to become a successful forex trader? Then welcome to the FedEx Mark. This is an induction course on fire. Ex training for complete begins in their scores. Way will uncover forex basics Technical analysis, fundamental analysis. Not only will you learn working strategies that will give you an itch in the forex market, but I will also show you how to make money. Forex Live examples with human. And on top of all this, all our tutorials can be viewed from laptop, tablet or even your mobile device. So don't wait. Sign up today and kickstart your father. 2. 14: Forex Indicator: hi traders and welcome back in this tutorial, we're going to be discussing forex indicators the basics about about forex indicators and we'll build up towards deciphering indicators individually, which will happen in an extra toilet. So for now, what he's a phonics indicated. So FRX indicator is merely a tool to assist with up trains and down trained in the market. It is also a to to assist with technical analysis within Imo now, if our checks indicate the gathers market information and it graphically represents that information to you on the chart. So if you understand your indicator, it will gather that information graphically represented to you on the chart. And from that information, you cannot make an informed decision as to what position you would like it. Taking the market with its A buy or sell indicators can be used for any chart any currency , P or symbol, whether it's stocks, commodities, any currency pay or any symbol can be used on indicators gives you a lot of useful information that can help you with making trading decisions. So if you are unsure about whether it's an uptrend or downtrend, you can always use indicators to confirm that analysis of yours indicators can reveal through volume and possible reversal. Points off means now I emphasize on the word possible. Who's indicators can sometimes give you information that could be misinterpreted. And from that, if you make the wrong season, you could end up losing money on the on the blade. However, if the indicators are used correctly and your entry is net big in terms off, you have rules for women to enter. Then you should have ah, lost of a time in the market and indicate is anything that can be used to predict the future financial or economic planes. So if you're using an indicator with all the information that it has, get ID, and from there you can make a trading decision to predict where the future price or economic trends is going to go ahead on two, then indicators is best useful. That indicators can also be leading lagging and bring indicates. Now it's very important to distinguish between what would be a leading indicator, a lagging indicator and I train indicator. Now what leading indicators. It will give you a signal way ahead of time, way before it Leanness but has progressed or started, we'll give you an indication that there is a new shift in direction and the train could be changing. Lagging indicator will give you an indication that the train has already formed. The train is already in motion and from lagging indicators. It's a stronger confirmation off the plane and then we have trained indicators and train indicators will generally help us to distinguish between whether we are in a coolly strain when a very slim now bullish means after in Paris means downtown. So let's look at leading indicators. Leading indicators can give early train signals. It is indicators with forced settings. Now remember, far sittings means you've calculated a small number off historical daughter, which means that can provide you an early signal. And sometimes these early signals can often be fake out and fake out in the market is when you're indicators are telling you that it's time to sell and the market is still bullish and it was never a self. It wasn't in fact, a fake out, usually chains before the economy as a whole changes right, so it will give you a signal. Even before the train I started, it will give you a signal that is a new train about to form. These indicators will also be known as can be called oscillators, a useful as so temper. Dixon's off the economy. So what's the latest can be very useful if you are scalping if you're not trading the long term planes. Like I said, a leading indicator gives you a signal before the nutrient or reversal occurs. Stock market returns are leading indicators. So if you use stock market in conjunction with your forex trading, stock markets will be for seeing as a leading indication was the stock market stains declined before the economy decline and vice versa. So let's look at lead lagging indicators. Lagging indicators usually give a signal off. The train has started. It's a much more slowly acting indicator often gives signal off the train I started. It calculates more past price, and it slows the indicated down in order together. More information and in once the conditions are met will indicate you that there's Nutri, informing that the new train as a really form it usually changes after the market has changed. It changed as a whole unemployment rate would be regarded as a lagging indicator was the unemployment rate, usually the X off to the economy exchange. All right, so if an economy is boosting, then the unemployment rate will only start boosting off the words because once the economy is doing better, the unemployment rate will only go down off the words as more jobs are created. These indicators can also be called trained following indicators lighter, they follow the ring and that also known as mo mentum indicators, which is very important because momentum indicators is what we're going to be using when we're looking at divergence and when we're looking at counter training, the market and in los but not least, we've probably heard about the train is your friend. The reason why the train is your friend is because that is where the money is now trained Indicators. House To determine the overall trend. Trading in itself is about predicting the future price movement ends. It's very important to know where the current prices going because that is way the very high probabilities off. So the very high probabilities are with the train and hopefully in most cases 80% of the time, the train will continue to it in that direction now, by drawing train lines we can see with currently in deciding, you can use indicators also to see where the pain is eating. And these indicators that you can use a strange indicators on moving averages. Now moving averages are very good playing indicators. And once we get to the moving average segment, um, which will be in a few tutorials after this, you will enjoy that session. I totally enjoy moving every just So hopefully I'll see you guys then. Anyway, I hope you enjoy this. Um, she's in with me on what the different indicators are. So after this, we will head into the indicators individually will understand them individually, and then eventually we will combine them into a trading strategy. So I hope you enjoyed it. Thank you guys, but by 3. 15: MACD (Moving Average Divergence Convergence): Hello, traders, and welcome back in this tutorial, we going to have a look at the Magdy, which is an abbreviation for moving average convergence divergence. Now the magazine itself is a mo mentum indicator. It comprises off moving averages, so the the Mac D is the most simplest and the most reliable indicator used by many forex latest. Within the forex market, it is purely based on moving averages. So the magnetic calculates and displays the difference between two moving averages. As the market moves moving, every just moves with the market. Why didn't he? Which means the Maggie's diverging when the market is training. So if there's an uptrend or downtrend forming, the Magne indicator will diverge or widen, so to speak. And that is a sign that the market you straining So one can define that from the Magne indicator. When the moving averages are converging, moving closer to one another. That is when the market is basically slowing down from the trend, and it could be a possible green change reversal in the plane. Some of the basics behind the mag dean itself. The standard settings for the Magdy indicator would be 12 26 9 So it's a 12 exponential moving average and a slower to any six exponential moving average. So why is the 12 faster than the 26? While the 12 calculates less historical daughter and 26 calculates more historical daughter ends, it is slower. The more the more than moving averages calculate, the slower the action. Do the market movement the Magne use based on moving averages In its simplest form, the Magne line is when the longer moving average you subtracted from the short term moving average. So the Magdy line is when the 26 exponential moving average he subtracted from the 12 exponential moving average. Now, as a result of all of this calculations, we now have a mo mentum oscillator. So the Magdy in itself isn't a is ah mo mentum oscillated. This information will obsolete above and below the zero level, and it has no upper or lower limits. The Magdy also has a trigger line. The Magdy, combined with simple line crossovers, can outperform a normal, exponential moving average crossover. So let's put that in theoretical terms. So with the magnet, you can be early on crossovers. The Magi can also display with Jordan. We'll cross in terms of the moving averages on the chart, So let's put that into explanation. So via the top part of the graph, this is where we have the chart with the two moving every just the powder blue represents the 12 exponential moving average, and the pink dotted line represents the 26 exponential moving average. So, as you can see over here, we have a crossover between the 12 and 26 exponential moving average Over there. We have a crossover. Okay, we have a crossover as well as over there. All right now when the Magdy So at the bottom of year, we have the Mac t indicated good. And as you can see with the Magdy, there's no limits at the bottom. There's no limits on top of the indicator when I and what we find is the Blue Line. It represents the Magdy line. All right Now, the Magne line is the difference between the 26 12 that's calculated in the oscillator, and then we have the legal line which is speak, go. So when the moving every just cross over on the chart, we'll see that in the middle over a year on the Magny, we'll have a zero line. And, as you can see, sometimes they use the Grammys on top of the zero line. Sometimes it's below the zero line and again on top. Okay, now, when the moving averages on the short crosses over, that is a time when the Magdy Legal line crosses the zero level. Now, when moving every just cross over, like in this case, the faster moving averages is a 12 crosses from above, below the pink moving average that is a cell signal in itself. And then we find the Magdy Treeger line crosses the zero level, and that in itself is a confirmation that the momentum has now shifted to a downtrend. And that in itself could be a South signal. And this would be trained. Following Iraq is what followed was a down train. So then the market pulled back, and as you can see, the moving averages crossed over here on the chart, which is our 26 12 year May, and once more, the blue line, which is our 12 or faster moving average across the 26 which is our slower moving average from below higher, and this in itself is a buy signal on the chart. And then what we find after that is that the Magdy trigger line also cross the zero line over the and that in itself is a buy signal. And then we can buy the market back up and we'll probably get out. Yes, you wouldn't have any. You wouldn't have made that much pops over there unless you have gotten out of the day, for example. But then we find the market crossing over again, and we see that the zero line has been crossed on the Magny, and that's a cell signal in itself over there again. And as you can see, we sell the market. That's a using it as a momentum indicator in a what crossover. So moving average crossovers in itself can be a performing strategy that will consistently give you profits. But having the South discipline to be patient enough to wait for the set up to give you the signal. That's something that is questionable, but we will get into strategies we will get into how different strategies work and how to combine strategies. But now let's focus on the Magdy and Magnus power in itself. So this is Frey and well, and this is a good methodology for using the Mac D. So how does the Magdy work? So if you take the 26 p m a and imagine that the line is flecked, then the distance between the line and the 12 exponential moving average would represent the distance from the Mac D line. Do the indicate the zero line. So remember, the zero line is right in the middle. So as we can see, the further the Magne line goes from the zero line, the wider the gap between 12 and 26. So, yeah, we have the 12 and you know we have the 26. So this market is commonly training bullish, and there's a distance between these two moving averages. Hands the Destin's off the trigger line from the zero line. All right, so that's a sign that the market they spoke training. And then we find that the market over a year is very further apart from one another. But I and it's very far apart from the legal line from the zero line. And as you can see, the distance between these 20 yeah, Azusa, for parts of that means that the market is not trending in a bearish momentum. So as you can see, that crossover happened over a year, which is directly we, this guy cross the zero line to the bottom. So the magnet, the Magdy Linus, crossed the zero line to the bottom, and that in itself was a nice cell signal. Sell the marker back down to exit the market. Basically, you have to wait for crossover in the opposite direction. That's a time we knew acceptable. So trading Magdy divergence and divergence is what I'm mostly used a magnet for opportunities off divergent. Now, when trading divergence, it gets you that near perfect Indy on the highs on the lose off the market. So magnesite, famous for the Magdy Divergence trading mated divergences found by comparing price self on the chart versus the Magdy values. Sailors may seem to be dominating the market at the moment, and the price continues to train down. They already might be signals for overall weakening. Off the seal is power, so that is where we find divergent when the overall weakening off the sailors power comes going in. So you guys how we look for those signals. These key warnings with the ski warning moments can be observed with the Magdy Indicator. And this is why I like to trade divergence using the Magdy due to the fact that it is a moment, um, indicator. And we can easily see whether the momentum for the buyers or the sellers or running dry. So what forex traders would see is that despite the price making new lower lows very important. Mac D doesn't confirm that and instead, registers higher. Lose. So which means, on the chart itself, I should see lower lows indicating that is a strong downtown still forming. However, on my Mac D, it will now register a lower sorry a higher low, and that will be the signal that the sailors are running out to steal and at the train could change. And it's my and it's on its way the opposite direction. And it will be true for the bias, which means the buyers will look at that opportunity as a counter train trading strategy as a counter train trading method. So what? All that theoretically, said Hollis, it looked practically so. Let's look at a few examples. So when the Magdy line crosses the signal line, we have a point to evaluate what to most recent Magne line tops and bottoms found corresponding tops and bottoms on the price. Short connect Magdy tops and bottoms and short tops and bottoms. So what I'm trying to say is that if we look at this area of year versus this area over here, yeah, we have a trend on up train and we can see we creating Ah high followed by a higher high. However, on our Maggie, we can see the market is not doing the exact same thing on the Magdy. The market is creating lower highs, and that in itself is a sign that the market is busy diverging, and we can now take an opportunity to go in the direction off the sailors. Now, obviously, you need to wait for some Candlestick formation somewhere around about there. But if it was me, I probably wouldn't have waited for that signal over there. I would have wanted the magnet to confirm across the zero line of year, and that will be a strong confirmation. But now what I'll do is because you guys have been on the schools for quite some time. Now, remember, what is an uptrend? The definition of an uptrend we should create lower with at a higher Liu Hai Hai I alone. Hi. Hi. And once move, we've taken out and we've created a new lower low. Right. So we have this higher Lou. Higher, high, no higher hide in that. And then we see the market bouncing down, creating a lower high, pulling back up. Remember, the definition is broken now, but now we have support and resistance levels where we get our role reversal from saw entry should be over there, and the rest is history. But I hope that makes a lot of scenes. So when we spot an opportunity or myself personally, I do not just impulsively jump into the opportunity. I wait form or opportunities. So even if I had grown a train line, Gee, that's a bit skew. Even if I'd thrown a train line over there once that train line was broken, that was an opportunity to sound as well. So they must be more than one around about four or five reasons that validate this. Our signal. Then it's an opportunity to sell same with opportunities. Way you want to jump in? Question yourself. How many? How many of these is? Do I have to sell? How many reasons do I have to buy it? Once you can find more than 45 reasons, then you have a higher opportunity or what we like to say. A higher probability off being successful in your trade. Now the market has now created a new high. So this is the low we've created a new high we've come down with created a Hi, Lou. But we haven't today today how you hide So now we have those two highs here, right on top. And on the Magdy we have a high followed by a lower high. And that in itself once more sees that the market is busy diverging and our basic all over year used to try and short the market. Now, if I draw on a train line, I would spot that the market broke. Read this and I would sell. Oh, uh, now if I did not get into a cell Young top Who even there? The best thing I can do for myself is to say that I have a low I have a high. I have. Ah, hello. I have even I and I now have a lower high right to the market. Did this high low? Even I lower lower now. I can say definition is broken, so I wanna sell. Weighed about one. A self room, I think the lowest low over there I drew a straight support level. So it was support of year. And now it's resistance over yet. So my entries would be in this vicinity of year. All right. Same applies over here. If we look at the market over there, my entry should be at this particular spot because there's gonna be a role reversal. And look at the nice seal off that there was even here when I sell off that there. Waas. All right, So remember, use your support and resistance. Use your understanding off divergence. Usual understanding off how when the definition of a nap during the down train is broken And from there you can have a bio. Some. Yeah. So going forward in a down train. Once the market has sold often, it creates this low, followed by a lower low. But ah, now Bagby, We have ah low, followed by a high low. That in itself again says that the market is busy diverging, and you can put in as much the reasons for when to enter in this particular market. So I'm doing schooner. But I actually just want to draw a line right across of year, you know, and we cannot say that once are trained, line is broken. That's a time when we wanna be buying the market or once we cross the zero level over there , that's a time when we want to be buying the market. Or once we've identified a new trend for bull run, can we determine to buy over? There was normally when you break when you break out of a trained, you're going to read this the train level before going in the bullish direction. All right, so I hope you enjoyed that one. Guys. I totally enjoyed explaining that one, because that is essentially what I look at when I when I look at Maggie and how I incorporate my support and resistance to get my entries from and in how I use the definition of a trained to help me define whether the train has been broken Yes or not. But if we look at this, overall market is a down train. So one should be very courses off, trying toe, attempting to go bullish on the market like this. So I'd be more inclined to look for the divergence for selling opportunities. But I So I hope you enjoy that one, guys. 4. 16: Stochastics Oscillator: by the traders. And welcome back to this addition off the online particle. As you know, my name is Ah, here an investigatory over Going to be discussing the stochastic oscillator now on under screen, I have the, you know, USD daily with a stochastic indicator with sittings 53 D. So that's the stochastic sitting that we have on this particular chart for this moment. So let's get into it. So stochastic is an oscillator or a indicator, as referred to no stochastic lines. Cross indicates a train train. So when there's a crossover on your stochastic is a possibility off a train chains. All right, In this instance, we could see the crossover happening over there, and we saw the market pulling to the bullies side. Then we had a crossover in a very exposition, and that was a signal that the market was going low. Then we had a cross over here, and that was a sign that the market was gonna pull up. Now it looks fairly straightforward. Looks really simple, but it actually it's not that simple. From what it looks like on the chart of the vehicles in a live environment, Um, stochastic does not necessarily, um, do exactly all of that. Now let's quickly do some of the basics off the sarcastic of young Top. We have 80 line, and if stochastic readings are above 80 the pain is over. Port to your currency would be regarded as overboard. Or what I would like to say is the price is too high on I. And normally, if the price is too high, that's when we wanna sell. Now, if sarcastic readings are over 80 which it was over there over there and touched over there , that's overboard conditions. That means that the price is too high for this currency pair. When's the cast ICS remain or stays above the 80 level? Let's say sarcastically is constantly staying above the 80 level. Then that means there is a strong up train running all right, so that dream is very strong up trend, and it's based to go with the direction of the training over there. Now, when stochastic leaves the 80 area, all right, so once it leaves that 80 area level, it means now that the market is either going to perform a correction or the market is starting a new down three So I'll explain to you guys now what is a correction versus a the formation of a new downplayed inversely a correction versus the start of a new Apne. So we have our 80 level your end up, and we have our 20 level year at the bottom with a 50 level in the middle. I know the opposite would be true for when prices below the 20 and this is regarded as over sold condition, lights and the market is over. So that means that the price used to low for this currency p. And it might be a good time to stop buying now if the readings remains below, um, the 20 area on. And I think this is, ah, somewhat often explanation as to a strong green. As you can see, Price started coming into this vicinity roughly about vessel. My word that's a bit skew roughly in that area. That's when Price, with a sarcastic readings, started entering the 20 area. But look at what happened after that. We still so prized, making a bearish momentum for 123456789 10 for athletes 10 days. The pastor still selling off all right. So that and it's also shows that the market was still in a strong down during that it could slow south for 10 days prior to stochastic being oversold. And that means that the down train was still strong. Now, once once the market once the stochastic um, leaves the two in the area, um, we would now expect the market to either do a correction or start a new up during that time . No, first and former um, you one corn just look at, for example, your you're stochastic indicator and be you know what? This is an up train, the market supposed to go up. This is a downturn in the market, supposed to put down. I think that's not trading. I think that's more wishful thinking. But if we analyze the chart itself that we have you and we look at the lows versus the highest honor, it's look at that blows, verses, those eyes. We can clearly see that we have lower lows and lower highs. All right, lower lows and lower highs. And I didn't itself screams out that this is this market is in a downturn in and the base opportunities for me is to sell the mark is to sell the market on the connection. Now, over a year, the market lift the 20 area pulling up. Now, this is a correction because the markets in the down train and it makes a correction and reach this level. And as you can see with the candlesticks that we have you on top When Price did cross over going back down as a cell signal, I would have been more interested in the South signal over here because we can see exhaustion from the candlestick formations. It's a sign that the by, the sailors are applying pressure to push prices back down. Now we can see that stochastic was close to be over border. The price was almost, uh, too high. And then we saw the sailors kicking in and gearing up to push prices back down. And what followed was a significant down dream for a lovely to any days, Um, which was very significant. So now we see that price again pulls back up. I and we now see that the market used over board want so we wouldn't apply another entity. So we would tell the market once more so we would most likely have gotten in your with the stop plus about that high cause if it takes out that hide in, it's a higher high, we can see that Price would have corn in a way but pulled back up and I and then we see practice over overboard ones more. So we would either attempt another entry, all right? Or we would still that I'm without first entry. Now if we if we look at the the overall trend that is down right, this is an overall downtrend, so it would be significant to try and get into this from me on I. Now if you have taken this particular entry of year and this one of a year, let's say you lost on this one and you took this in Delia, which means you would have gained money over there that when you would have gained money on and had you take unnecessary Novia, you would have gained money as well. So that's a significant part off train following strategies. You probably would have gotten one wrong and you would have gotten three off them great, which gives you a 75% accuracy on that trading strategy. But had you taken less this particular trade with a stop loss about that level, your stop loss wouldn't have been entered or three. Good. And you would have still bean in that particular trade being successful? No, we know about divergence now. So if we look at price action of year versus stochastic so over the we spotted a little bit of divergence and I now, besides that we if we look at this area, these scandals with a long weeks to the top, they are a sign that that the sailors are back in action and they are ready to sell the market back down. I would have taken this particular trade year because of that candlestick pattern over there that is referred to as an inside bar. As you can see, the market does not go higher or lower in this bullish ball. Yes, so that's inside. But I would have taken it a Mokena shy away from it. Same Mo via this guy inside ball brakeman. That's the high off the candle over there. That's the level of a candle over there wasn't taken out inside ball. While so conditions are overboard. I mean couldn't really more perfect in that I and then lastly year we had a nice shooting star shooting star candle, and that most likely would have also gotten me into that particular trade because not only would I have identified that we have resistance over the eye and that the market was finding support over the as well. But obviously we would have seen the support over here. We would have been able to identify the support, but we wouldn't have known what's gonna happen there because that's the one that we were trading was likely. Our initial first take profit would have bean at this level of year, all right, and then, once prized, bounce back. I mean, this in itself is just what we can refer to as a kind of a double top formation. And you get inside ball with that traveled up, and that's a very good signal to solve the market over there. Uh, so essentially, what I want to say is that we can just used to cast six and be like, you know, what's the Castaic 11 into is minutes crossovers. I'm gonna buy and sell exit. There has to be direction to the market was strained. Following strategies are more successful. I've been trying to counter tree in the strategies, especially with using stochastic. I won't regarded as a reliable enough to go counter train on strategies. It's all about the success. It many different strategies has many different outcomes and it's all about success it So let's move along. So if we if we look at our stochastic swe, have a K period which is our headline, and we have a DPD it which is our blue line powder blue light. Now, this would be regarded the similar way as moving every crossovers I. So if we have a crossover, for example of year, um, we can see that the market made a bulletin. We are. And then we had a cross over here on top by the 80% area you can see the market and sold off, and then we had a cross over here in the market when bullish and I mean after that, Yeah, I mean, had you not taking this by position over here, there wasn't much tonight that would have bean ah, loss over the um and there was a crossover. And in Russell back down tonight, So I want to be God Trading movie. Ah, stochastic this simple as, ah indicator. I would prefer be use a photo with it. But if we look at best particular market what significant use is that we we had levelled on each side? All right, so all I had to do us was basically look for position where if the market was overboard at top of my liver at sell it down and if it was oversold, for example like that, I'd buy it up And if it was and I mean they we even got a nice inside ball pattern as well , and I would sell it out. So using the gases can be very good for range bombs. Um, was if the market is in that range bound All right, marketing that range bound mean when stochastic is overboard. But I should now be at the top of the resistance. And when the price is oversold, stochastic should now be at the bottom of your twin e um do these out or so case view that the market is oversold at that particular time. All right, let's move along. Statistics overboard and oversold areas now, as with anything, um, the above the 80 level is over board Well, over the 20 years off. Soul. This is that example that we were discussing earlier when the stochastic remain in the oversold area. This is when the trend is strong to the downside. I can remain over there, but let's just look at the chart itself now, once more by taking the highs and nose low eyes in the willows, it's obvious to see that this is a downplaying all right. Now, when using sarcastic in a in a specific thing, when you use the tastic in a down thing, you wouldn't only seek for opportunities that's overboard. All right. You would have more success by doing so then what you would when you were trying to count it. Okay, Now stochastic by default has 80 level and a 20 live so above 80 the market is over put below twin the market years of soul Now the rules year or to wait and close to cast its lines off. The being in overboard, over soul comes out from that zone rights. And now that basically means that when I saw this was a downtrend, I needed to wait for stochastic to leave that 80 a DEA, and then I get myself position. All right now Stochastic is pulling back, and now I need to wait for stochastic to leave that 80 area before I sell it back down. Because it's a down plane. I am only interested in selling when the price is overboard, when the price is too high. All right. So I hope that makes a lot of sense, which means I am not interested about what's happening here at the bottom. It does not concern me because if I understand, the more could. If I understand the flow of the market in a down dream, it creates lower lows, lower highs, no lows, lower highs, no willows, lower highs and lower lows. So my injuries need to be on that lower highs because these over a year, our trace mints or Pullbacks and I need to identify get in when the market pulls back. So this is a pullback. This is a cool back. This is the pullback. And when it comes to a cool back and you have stochastic from your charge in a down train knows Pullbacks will become overboard and once they're overboard and stochastic leave the 80 area, then we are interested in selling that particular mook. I hope that makes a lot of sins when using stochastic in 18 and how to use it. What train trading in the forex market. Stochastic divergence. All right, so the gas sticks can also offer you divergence. However, the accuracy off the divergence might not always be that significant. Also, everything is depending on any time frames accepted that you're looking at, so you'll be looking at euro us d. H. Four and once more guys, divergence remains divergence. However, the indicated that you're using is slightly different. So what we are going to be looking for is a difference or divergence between stochastic is and the price divergence between the sarcastic send the price suggest weakness in the main train and generally the peaks will differ from stochastic simplex job. So as we know, we are looking for those lower lows versus those higher, high, higher lows. And if we are planning on selling the market, we are looking for that higher highs and lower highs. Now, if we look at this particular market, we had a lower low and in price jump up attempting to correct that lower level over there. And that was basically the lost kick off a dying horse. All I do is I drove my train line and I could see price breaking, re testing. And that's my entry. Stochastic is well on its way to the 80 area. It has left the to any area over there. And I'm happy to say that I'm punishing that, but it all right, over Yeah, we see The nice is basically giving us Ah, I ah highs. But on our staff gas six I alos all I need to do this. Oh, my train line. Assume that my train line is broken. That's where I wanna sell the market from last. I can see that my sarcastic last left the 80 area so I'm confident that the market's not gonna start early to the bully side over there. So I really hope you enjoy the session on stochastic. We will get these indicators into our trading strategy going forward. But for now we're just building up towards individual understanding individual indicator and then seeing how we can concurrently use them as a as a strategy and as a working system within a live in vitamin. So I really hope you enjoyed this one, guys. And sorry for my voice and sounding a bit groggy this morning. But you will. We will get there when it comes to our forex trading and our knowledge. So I really hope you enjoyed this one, guys, but by 5. 17: RSI (Relative Strength Index): by the traders. And welcome back to this addition off the online forex school. As you know, my name is a here and in this segment, I'd like to discuss the artist I indicator, which is also known as the Relative Strength Index. All right, now that a little strange index is a great moment, Um, indicator The standard settings is a 14 period city. That means that calculates the average off movement for the last 14 period. And if artists eyes above the 50 level, we can assume that the market is in an uptrend. If artists eyes below the 50 level, we can make you Samson that artists I started that price is in a down trade. Now there's another methodology that can be used for trading the artist I, which is if artists eyes above the 70 level. It is regarded as overboard. And if artists eyes below the 30 level, it is regarded as a so So what did the enter that methodology? Whenever the audience I exit you 70 area, the downtrend is confirmed and whenever the orders I exist, the 30 area the down train is confirmed Now, in my personal capacity, I would avoid trading this methodology and the reason so reason being is that the success rate they off is very unsuccessful. All right, No, we ask traders, we look for high probability setups. Um, and we need to ensure that we reap the best benefits from our trading. So using it in decimated, um, I would not recommend And also case it you by looking at this Euro USD short on the daily. And this is our artist I Weber sitting six and year, we have a 70 level right on top and a 30 level right at the bottom. So, you know, we can see that prices on the high and it was above 77 considered overboard. And when it left the 70 area, we would take a cell signal and that one would have been successful inversely over here. We would have taken this by signal. When all is I left the city area and that one would have also been successful. So would I do that right? So that they would have been too successful trades. I would have taken another position of you, and this one would have also been successful. Might not have bean that much that much money or perhaps that we would have made. But we would have had a successful prayed over there nevertheless, and then we find the market wind up and made a really abilities stepped up over there. All right, so over here we can see that the artist I was above 70 numerous times, all right, and left the 70 area many times over the no. How come when it left the 70 area year you did not sell off in the price over there was the momentum off. The bias were impossible. There was a strong momentum for the buyers, all right. The buyers were more impossible in the sailor's. So hence this was unsuccessful. Now, if if I had 123 if I had taken three trades and they successful and I taken after that one to the or five positions and all five of them were unsuccessful, then that strategy wouldn't have made since I because I would have won three. But I would have lost five. So my rested reward ratio over they wasn't active, rewarding, okay? And this methodology wouldn't have made me a happy Chappy because I'm missed out on this entire bull trained over here by trying to short the market in a counter train in account train methodology, and it would have been unsuccessful. So in my personal capacity, I would not recommend or use the artist I, as overboard, oversold when it's above or below 70 and below 30. All right, however, I would definitely use this moment, Um indicated to emphasize whether the market is in a napkin by. The orders are indicating that, but the artist eyes above the 50 level, or that it's in the down train when the orders I is below the 50 level. So let's go and have a look at a scenario. We, the artists I 50 level, comes into play over here. No. In order to insert an artist I 50 level, you'll have to do so with the sittings. So the 50 level is used to separate buying forces from selling forces. That's very important. It separates the buyers from Ciller's. Certain strategies, used the 50 level to confirm long and short injuries. That's also a good methodology or good way of using your artist. Now, traders view the level above 50 as a boob directory, Bulls zone and traders view the level below 50 to be the very state Italy, the bears zone over the So, Yeah, we have your USD on the daily, George. We have our price action over a year and we have, ah, artist I over there and we can see bank in the middle of your on our orders. I 14 we've got a 50 level and above this 50 level, this bias territory and below the 50 level you, cilla stated, which is very good. And this is the exact men in which I personally used the artist I in my trading and my trading methodologies. No, when is a downtrend artist? I need to be below 50 in order for you to have that confirmation, but I So when the artist eyes below the 50 you happy to say that it's in the downtrend and now you need to look for selling opportunities when honest I crosses over to skew lie. When the artist I crosses above the 50 is bound to be an update and and it would be in the best interest to look for buying opportunities. Okay, Now, when the artist I again crosses below the 50 over yet we would see a selloff forming. And there we have a nice settle in price over there. Okay? And in the artist's eye crosses again above the 50 level. And we can see that the market made a nice rally to the upside because it wasn't biased editing. So when the market according to the artist's eyes and bias territory, you look for buying signals. When the market on the other side is in Selous territory, you look for selling opportunities. Now, one last thing before we continue with before we continue with decision. If we look at this level of year, I would see that we have two identical highs in price. All right, so the market made a high and in the market, pulled back and created a even high over the all right. I'm often this is referred to by the naked trader as a way me all right, because it looks like a, uh, him. And this in itself is where we find double doc formations. All right, so this is referred. This is referred to as a double top formation. Was the market made do identical tops? But if we look at the artist I we would see there was divergence, right? There was divergence between the two peaks. With on price action, we made even highs. But on a artist, I made lower highs and that in itself used to divergent set up. And had you place your order into that trade, you would have been successful. Um, other way off, getting in on that divergence would have been right over there in that train was broken. We had a nice seal off over the and then receded. The market actually made a nice pool run after that as well. Was that were stolen a bull during that? I, um so that was a good set up there from the you to use the daily and orders. I gave us nice hints and tips on way and hard to get into the particular market over. All right. So I really hope you enjoy the session with me guys, and this is the end off the beginning training, so to speak. And in the next segment off your beginning, training will look at the at one particular strategy. That's a technical trading strategy. And then we'll look at one particular strategy that are useful fundamental trading. And those will be the two strategies that you were going from the scores. I'm going forward and as soon as we go to the more intermediate and advanced trading, we're going to be trading without indicators were going to be looking at Fibonacci Trading . We're going to be looking at Elliot Wave Principles except them, and that will That will take a little bit more time because they, uh, more Candlestick information will come into play mawr information from them from reading from the Markit like impassive waves, corrective waves and accept. All of those were coming to play over there. But I'm just glad and thankful that you guys made it this far. So within the next tutorial, we're going to look at a trading strategy, a methodology, which is moving averages or a science the passage combined. And then we'll look at the fundamental strategy as well. Now, after the scores, those two strategies, if understood, welcome, um can really and definitely make you capital in the market. But I know this many traders out there that would want advance experience so that they can look at the market from an advance point of view. And at the end of a day in my personal opinion and capacity, it's all about if I can play the market using my strategy and believing in my strategy and following the rules of my strategy. And I'm successful, I don't need much more than I. But yes, it's always to your advantage. You know, different trading methodologies, artist. So that you have a broad understanding off technical analysis and that you have a broader understanding off how to trade the market in different market conditions. Okay, so I really hope you enjoy this one, guys. Thank you and bye bye.