True Forex Trader

Interesting moment I’m observing now about my current trading transformation in Forex.
Since I’ve decided to trade daily charts I spend far less time now thinking about Forex every day. Finally this week under the influence of different daily events happening plus luxury summer time days, this week I caught myself missing out on checking my Forex charts for two days in a row… And before that also two days were forgotten + 2 weekends…

I must say, I’m quite disoriented in what is happening on the market now. But I’ll catch up.
And to help me in this I’ll call for my new friend - KAGI CHARTS, I’ve learned about some time ago.
Simply taking trades in the direction suggested by Kagi charts has decreased my losses in Forex dramatically.

To illustrate it, look at this regular daily screen shot of EUR/USD. It is difficult to say which way to trade now: up or down.

While with kagi charts (same time period same currency) we have a clear direction, it points down:

Kagi charts consist of two lines: thinner and thicker one.
Thinner one means market is in a downtrend. Thicker - in an uptrend.

So now, before I go to check my other trading setups and rules, I get direction bias from Kagi charts.
Kagi charts may not be as useful for shorter time frames in Forex, while for daily charts trading they offer a good edge and additional confirmation/signals towards market trading directions.

good luck!

Filed under: First steps in Forex