00.09– 00.17
Hello, dear traders, here is the tutorial by FreshForex.
Today we'll find how to earn on the currency pair – US Dollar/Japanese Yen
2 The instrument of technical analysis we are going to apply.
00.17 – 00.26
To learn the price direction in the nearest time, we will apply the tools of technical analysis and today we will check signals given of ADX indicator.
3 What does the instrument say about the chart? How to analyze?
00.27 – 00.46
Here is the H4 chart of the pair, where we'll overlap ADX. It is based among “Trend indicators” in MT4 platform. The period is 14, which is standard for MT4.
We see that there is the trend. ADX line is growing. Currently ADX is based at the level 55.1. If ADX is above 30, it means there is the trend. The positive line is above the negative one.
4 Which price movement do we expect?
00.47 - 00.55
Thus, we've got a positive trend, that is to say, a rising trend.
5 How can we earn on this price movement?
1.00 – 1.19
The basic rule of technical analysis says that we must trade along the trend. Thus, we will follow this very rule and trading along the trend in our case will mean buying of the pair Dollar/Japanese Yen.
There is a noticeable growth of USD/JPY quotations. The chart is growing and allows us to benefit from the basic rule of technical analysis.
6 Opening a trade. Our deposit. The volume we are going to open.
1.20 – 1.38
We will pick USD/JPY in the “Market Watch” window. Our deposit amounts to $5969.70, will choose 1 lot and press Buy button. So, I have bought the pair at 102.38.
7 Putting Take Profit. How much will we earn?
1.39 – 1.52
I will put Take Profit at 102.68, which is by 30 points above the Open Price. Thus, I can earn $293 added to my trading deposit.
8 Our trading result, how much we earned.
1.53 – 1.07
Dear traders!
My trading position was closed based on the Take Profit order. The chart is demonstarting growth of USD/JPY pair. It allows me to earn $292.17 extra to my trading deposit!
Good luck and stay tuned!
