Okay, this is day one in my trading on my demo account. On that account I have currently $56. To follow the forex prices and to analyse the charts I will be using the free MetaTrader 4 software. All the charts available in this section will be generated with MetaTrader as well.
During my trading I will try to keep in mine the intermarket analysis as well. Though, I think for starters it will be extremely difficult to keep in mind all the different things I should keep in mind. So don’t sue me if I don’t follow everything the way I said in my theoretical posts ;) Also, considering this is my first practical trading day I will possibly say out loud a lot of mornic things, so be sure to correct me.
- CRB Index was up yesterday and is up a bit today as well. This indicates that US Dollar should be weak.
- two year treasury bill bonds are down a bit. This indicates that US Dollar should be weak.
- 24-hour gold price is down. This means that US Dollar should be rising.
- US Stock market is generally falling which should be bearish also for US Dollar.
Okay, just a first look at this stuff. Have no idea how reliable my observations are here or whether I have checked the correct info at all. We’ll see.
From news I read that EURO nears 20-month high against US Dollar (FT).
As first thing I will do in Metatrader is to set up couple of different chart templates.
For confirming trends I add Aroon and Moving averages to the chart. 14-day tomato color EMA and red 50-day EMA. I’m also adding Aroons (upper aroon blue and lower aroon lighter green). Right now it looks to me that Aroon can usually be used for short term trends and can help us with trading. Here’s one 15-minute chart from today’s EUR/USD together with my observations, the chart has been split up to fit it here better.
Note that light blue is the lower aroon and darker blue is the upper aroon.
Lower Aroon crosses the upper aroon and the 70 line which gives a bearish signal. Upper Aroon crosses the lower aroon and also the 70 line giving a bullish signal.
Upper and lower aroon start to move together inthe same direction giving a signal of indecision on market.
- Upper Aroon crosses the 70 line giving a bullish signal.
- (never mind the second 4 on the chart, actually it’s meant to be 5) here again the two aroons are moving in the same direction giving indicating indecision in the market.
So it looks like that keeping mind the Aroon might be a good idea in the future.
This post will be updated soon, not sure if I can get to any actual trades today, but at least I hope to make some discoveries and get a bit closer to the actual techniques I will be using.