When you are trading using a one or five day chart it can be difficult to see the forex signals in the AUD/PLN pair. The double top or double bottom signals can be seen after a consolidation period. In a short trading period they could be harder to define; however, taking the time to explore these signals can help your performance. There may be a series of doubles throughout the period, trying to break the support or resistance patterns. You have to look closely in order to see the movements. To help explore the topic at hand July 12, 2013 day chart and the entire five day week was looked at.
Forex Signals on the AUD/PLN Chart
On the day chart you tend to see a lot of little ups and downs. It is hard to tell if there is a double top/bottom, triple, or any other type of signal. You can see periods of consolidation with a slight up trend and then a significant downtrend for the AUD. Yet even on the downtrend when the PLN rate reached 2.9941 it returned so quickly to a higher rate there were no forex signals to track. You could have lost a great deal on the wrong position or you could have lost half your profit if you tried to ride it further. Of course the pattern continued lower than 2.99 actually ending at 2.9751. This end took the entire afternoon to happen with plenty of consolidation and unclear forex signals.
The reason you might want to look at the five day chart is to get a better idea of certain signals. There are points on the five day chart that look more like double tops and bottoms. While you cannot trade on these for the day, you could make a longer trade day. In fact, day trading is better done after you have a long term understanding of forex pairs. This is especially true of the more volatile AUD/PLN. The Polish Zloty tends to be more volatile due to a lack of volume and liquidity. It takes time to learn this pairing.
Forex Signals for AUD/PLN Five Day Hindsight
Hindsight is nice, but you definitely wish it could be foresight when you trade in the forex market. Finding forex signals a year later or even a day later is not going to do much good. The point of looking at a longer outlook is to see what long term trend might exist for you to trade on.
For the AUD the five day chart clearly shows the first week’s trend which ended with the AUD gaining on Friday July 5th and continued until mid July 10th, 2013. On the five day chart you see a double bottom. It is followed by an attempt of the pairing to gain in rate, meaning the AUD gains and the PLN loses since the rate was heading towards 3.0600. It did not last, but then another signal appeared. This time the forex signals seen clearly stated a gain would happen, which it did with the rate hitting well over 3.1000.
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