Where Did the Weekend Go?

After a much needed break over the weekend, I’m back in the driver’s seat of my forex lessons.  I actually intended to work on them over the weekend, but I took in so much information last week that my poor little brain needed some time to let it all soak in a bit.

Diving right in – lesson 15 gets into using different trend lines.  Today I was shown how useful horizontal and converging trend lines can be.  Horizontal trend lines can be used as barriers in which we would be looking for the currency to bounce off of the barrier or to break through it.  Converging trend lines show us when a currency is being squeezed and at some time it must break out of the pattern because it cannot go on indefinitely.  The graphics really helped to demonstrate the point, and it immediately became obvious how useful these tools can be.

Sid quickly reminds me that this is not going to be my trading strategy, but rather that using these tools will help me draw lines in the sand and make better trading decisions.  The use of the tools is like setting up and reading a roadmap so that I will have some idea of where I’m headed.  I know that I am looking for small pips here, but I now know too that there will be times that I can ride a monster move with the aid of my newly acquired tools, and I find that quite exciting.

I will close this lesson with a quote from Sid, “And remember, trend lines are not the ultimate trading tool – they’re just one very simple type of tool that helps you to examine potential entry points for a trade when put together with other knowledge and confirmation techniques.” I took this to mean that there’s lots more to come.

Lesson 16 is the first in a series of short videos Sid is using to show me how to set up my roadmap for trading.  This is charting basics, and I have to say that Sid keeps the language very clear and simple.  He gave me the terminology used amongst professional traders, and then he gave me ways to easily remember them in plain, simple English.  Great tips!

The video itself was just over 8 minutes and it showed me how to set up resistance and support lines.  These show the extremities of movement in the chart that I have decided to use.  Sid made sure that I understood that I need to make sure that these lines are relevant to the time chart I am using, because if I change time frames, the lines become meaningless.

Today’s lessons were quite enjoyable.  I think the break did me a world of good.  It seems clearer and fresher today…maybe it was the coffee…just kidding Sid.

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