Forex Videos

Looking at the 4 hour chart, after a huge decline the S&p 500 index it has recovered somewhat, however the market conditions look choppy. You can see that the S&P index has lots of ups and downs. This price movement has created a triangle pattern. This triangle patterns indicates traders' indecision. What we are looking for is a breakout of this triangl pattern in S&P index.
As you can see that this choppy market has also affected the Forex market. This has created lots of false trading signals. Looking at the USD/CAD 4 hour chart you can see that it has formed a Head and shoulders pattern and broke to the downside. This triggered a sell signal. As you can see that the USD/CAD didn't fall through these and ended up being a false trading signal. It became actually a significant rally after the breakout to the downside.
Looking at the USD/ZAR we have a similar situation. We have a Head and shoulders pattern, we had a breakout and a rally after that. All these false trading signals have resulted from the S&P 500 index. So we wait for the breakout in the triangle pattern of S&P index. If it breaks to the downside we will buy the US Dollar against all the currencies. Usually when the Stock market moves lower, the Dollar rallies. If the S&P 500 moves higher the Dollar will move lower against all currencies in the Forex market.