There are Many Forex Setups -
Here are some Goodies...

Using proven Forex setups as trade entry conditions should be part of your Forex system. The likelihood of a successful outcome will be increased immensely.

Currency prices are generally driven by Fundamental factors. However, during the periods between major releases, Technical factors seem to have a greater impact on the market. Speculative traders will push for stops behind key support or resistance levels, causing waves in the main trend, which present opportunities for profit.

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Experienced traders develop their own Forex setups, but they are most often derived from a few basic chart patterns. A good Forex signal is a must have tool in your trading kit.

As you see, the new uptrend ran out of gas as it hit a major resistance level and dropped through the new supporting trendline. These were the first bits of good news. Next, after taking a dip, the price tested the resistance line again, but couldn't break through and began to drop.

I put up a few extra technical indicators to get a feeling of the market sentiment and all 3 confirmed the price was at a peak and due for a drop. I think the trading gods are smiling on me!

Finally, the price dropped below the most recent swing low, which was my signal to jump in.

• Price is moving against the major trend
• The rally runs out of steam at a major resistance level and drops through new short term trendline
• Price retests the resistance, but fails to break through
• Movement returns to major trend direction
• Price drops below most recent swing low
• Indicators point to likelihood of downward activity

There are actually a few setups here that can stand on their own. Click the links for a detailed description of each, plus a few others you should know...

Failed Retest
Forex 123 Setup
Exhaustion Spikes


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