FOREX Grad Call Notes 12/9/09

Currencies have three possibilities of movement, UP, DOWN, and Sideways, Learning to recognize when the trend changes is key to playing what the market gives you. In recent weeks we have seen sideways trends, meaning that our strategy will need to change to Bollinger bands and the CCI, to enter trades and set profit targets. Set your Bollinger bands to a 20 day average with 2 standard deviation. Set the CCI to a 20 day HLC/3 average and add -200 and +200 to the levels. Look for the Bollinger band 20 day average to be as level as possible, then look for the currency to break one of the bands, look for the CCI to be at an extreme point as well (-200, for a support break or +200 for a resistance break) Enter the trade when the currency comes back into the Bollinger band and set your exit to be at the 20 moving average of the Bollinger Band.