Forex Trading - 3 Trading Opportunities for Profit Right Now

By: Sacha Tarkovsky

Here we will look at a trading opportunity we looked at recently and look at two more that are shaping up right now.

Let's look at them.

Pull up any free chart service such as futuresource.com and add the following indicators:

Bollinger bands, stochastic and Relative strength Index (RSI)

Now let's look at some trading opportunities - this article is written at 12.AM CET

US V Canadian Dollar

This trade made us some great profits on the downside and now we have taken a contrary trade as we have zeroed in on key support at 1.10

Prices are trying to hold current levels a close below the 1.10 level - negates the contrary trade.

RSI is oversold at 24.38 and stochastics are flat.

We are already long at current levels to enter new positions we look for stochastics to cross with bullish divergence.

Target is the middle of the Bollinger band.

British Pound

We have had a lot of good trades in this currency and made a great profit from the recent breakout.

Prices have pulled back from the highs and another opportunity is presenting itself:

Prices have dropped to the middle of the Bollinger band and started to steady - RSI Has started to rise but stochastic momentum remains down -= The key to this trade is to watch the stochastic

A cross to the upside with bullish divergence should see a quick pop to the highs.

As per usual wait for confirmation of strength before going long.

US Dollar V Japanese Yen

This trade treated us well last time we looked at it and we made a great profit trading the dollar to the long side and were looking to exactly the same again.

Prices broke up above the 120.00 level and prices are testing the breakout point.

If this point can hold and stochastics turn bullish - the bulls will take charge and the US Dollar looks set for strength.

Again, it's a question of waiting for confirmation before getting in.

Price momentum has not yet turned up so wait for the stochastic to give the signal.

Getting In the market - Confirmation Is The key!

In any trade you attempt, don't try and impose your view on the market - wait for your view to be backed up by confirmation that price momentum is in your favor.

This will dramatically increase your odds of success.

We love the Relative Strength Index and particularly the stochastic indicator - it amazes me that more traders don't use them.

If you don't read our other articles to find out how they can help increase the odds of success in your own trading.

Trading is all about getting the odds in your favor.

For this you need to understand and use changes in price momentum to enter your trades.

Good Trading!

Foreign Exchange
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