A lot of the time new traders aren’t too keen on trading price action – it’s a lot easier to look at an indicator, e.g. an arrow telling you to buy here or sell here. But really, it’s just a matter of training the eye, time spent on the charts, and getting used to spotting patterns, trendlines, etc…
Raghee uses something called a “Pattern Recognition Software”. It merely informs traders of what patterns are pending. You don’t need to use a software/indicator to inform you of this, like I said, you can spot them yourself after practice. Also, there are many indicators found on the web that alert you of patterns/S&R.
Anyway, Raghee mentions: “The 30-minute EUR/USD has alerted a Channel Down pattern on the PRS. Before I jump into any pattern there are a few criteria that have to be met. First of all, remember that the PRS is not a system therefore each alert (Emerging or Complete) must be checked for the following – 1. Is it developing within the correct market cycle? 2. Is the market cycle also in agreement with the current 34EMA Wave angle for that time frame? Once that is determined, the pattern can then be considered for a potential trade entry.”
Many people rely on just indicators to trade, and if you’re using JUST indicators alone, exclusively, then you’re gonna have problems becoming a profitable trader. And if you are a profitable trader by simply using indicators, then I have to take my hat off you, you’re truly more skilled than I am, since I would never be able to make consistent pips purely via say, MACD, or Stochastics.
Having said that, even if you’re already making consistent pips with indicators alone, you’d become an even more powerful trader once you introduce price action, support and resistance, fibonacci, harmonic trading…
Raghee continues: “The entry strategy is going to be determined by not only the pattern but also the market cycle it is developing within. So the market cycle must then be confirmed by the Initial Trend reading and then we’ll use the market cycle to determine the best entry. Considering that let’s take a look at the PRS alert window for the EUR/USD’s Channel Down.”
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