FXB tools. How to put everything together
This is a most difficult part of work for beginner in any science that requires analysis and synthesis. The price data have been already analyzed by computer and you see the result in form of lines and diagrams. They are nice and impressive but useless until you have no answer for the most important question: «What should I do — buy, sell or stay away, and when to buy/sell?»
This is example for using of some tools from FXB Indicators Package. To see a similar picture you have to add MACD (fxb_macd.ex4), Digital Filter Trendlines (fxb_df_tl.ex4) and EMA20.
Look at snaky-shaped magenta TLF line. While it is above the green TLSD line the uptrend continues.
When TLF crosses TLSD from up to down with near a right angle and remains below TLSD — a downtrend began. This moment is highlighted with yellow color.
During uptrend prices are mostly above the blue EMA20.
MACD bars in positive area is another sign of upward move.
After July 25 we see several indications of beginning downtrend, i.e.
MACD become negative
TLF-TLSD crossing, TLF runs below TLSD
Prices are below EMA20
While downtrend continues the conservative trading strategy assumes selling on corrections at the points where price hits EMA20. Aggressive style includes the short-term long trades on upward correctional swings.
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