Let’s disassemble here some substantive provisions.
1. On all time schedules (since day and finishing 5-minute) the arrangement of Parabolic is considered. Thus it is necessary that on all schedules of Parabolic was on the one hand from the price (or only from above, in this case it is necessary to open short positions, or only from below, in this case it is necessary to open long positions. The arrangement of Parabolic from counter party from all named above is supposed on a 5-minute schedule. However in this case the technical analysis of Japanese candles of this time period should speak unequivocally about their start of motion towards Parabolic.
If the arrangement of Parabolic on a day schedule differs from all the others the day schedule is excluded from the analysis – the same as week and monthly. But thus the trader should remember constantly that the trade range thereupon can be much shorter (though is long enough for extraction of certain profit).
2. To construct lines of support, resistance and a trend line. At necessity (on 60, 15-minute schedules) to specify whether there took a place trend line break and is it true or false.
3. Between Parabolic and the price (candles) are СС with the periods 4, 9 and 18. While between Parabolic and candles it is located 18-period СС Parabolic is as though under “protection”. As soon as Parabolic “dives” under СС, or Japanese candles rise over movement (at an arrangement of Parabolic from above), or fall under movement (at an arrangement of Parabolic from below) it is considered that Parabolic left from under “protection”. In this case the trader should be ready to that candles will be pulled to Parabolic and “will stitch” its shade or a body.
In other words, Parabolic will be hammered”, and it means that it will jump out on the other hand candles, and the price, accordingly, will go in the opposite direction. On such moments the trader can specify future termination of movement of the price, analyzing 1-15-minute schedules. Besides, СС give in itself signals on purchasing and sale which also are necessary for tracing and considering to the trader. So, the signal on purchasing gives the crossing moment from below upwards (“a gold cross”) 4 both 18 СС, and 18 and 65 СС. Accordingly, the signal on sale (“a dead cross”) gives crossing same СС, but from top to down.
4. СС should leave a body of histogram МАСD, giving to the trader a purchasing or sale signal. RSI should be or above value 50 (in case of intention on purchasing), or more low 50 (in case of expected sale). Arrangement S.Stochastic on 60, 15-minute schedules has no special value. However their arrangement in a zone of resale is undesirable (if we want to buy) and in a zone of rebuy (if we want to sell). The given indicator shouldn’t be in a zone of resale at all (at intentions to sell) or in a zone of rebuy (at intentions to purchase) on 10, 5 and 1-minute schedules.
5. At the given system of trade price movement in an opposite direction (after an input point) is practically reduced to a minimum and is possible only under the influence of any fundamental factors or in case of inexact determination of a point of an input and premature opening of the contract.
In case you decided to participate in forex trading should start from learning the basics of this market to make sure you do not experience problems with this industry.