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Wednesday, October 26, 2011
Set up your charts
Set up your charts
A. One the left hand side of screen you will be able to choose your chart. Choose EUR/USD (or whatever currency pair you like) , 5 min, line and the chart will appear on the right hand side. Maximize the chart to fill the right hand side.
Your chart should now look something like this:
Now if you want to make the price line darker, you can right click right on the price line and a properties box will appear. You can adjust the thickness of the line. In this example the price line width is set it to 2.
B. Before we add our studies to our charts, I would like you to go to the following links. Read how to trade the Parabolic SAR here:
www.incrediblecharts.com/technical/parabolic_sar.htm
Read about how to trade moving average crossovers here:
www.incrediblecharts.com/technical/moving_averages_three.htm
Read about how to trade Bollinger Bands here:
www.incrediblecharts.com/technical/bollinger_bands.htm
*We will be giving examples of how to apply these studies to day trading Forex.
C. Now we will add the Moving Averages to the chart. We will be using the Exponential Moving Average 10 , the Bollinger Band Exponential Set at 20, and the Exponential Moving Average 50.
Click on Moving Average on the left hand side under Studies. Set your first MA to 10, close, exponential and you can make it red with line width 2 under the Color/Style Tab.
Click on Moving Average again and add your MA 50, close, exponential and make this line blue with line width 2.
Here is a shot of the Moving Average Properties window:
D. Now go to the studies on the left hand side of your screen Select Bollinger Bands and set them to 20,2, close exponential. Make the middle band green, line width 2.
E. Add Parabolic SAR to your chart by selecting it on the left and use the default settings. Make the dots darker, by selecting line width 2.
Your chart should now look like this:
You can zoom in and out of your chart using the small buttons in the bottom right hand side of your screen.
How To Change the Currency Pair and Time Frame:
On the bottom of your chart, you can change the currency pair and right beside it, if you click on the button that says M5 you can change the time frame of the chart. The studies will automatically be added to any new time frame and currency pair that you select.
How to Exit the VT Platform Properly:
To exit the VT platform, click on FILE and then EXIT. The studies that you added to your chart will automatically be up the next time that you log in to your account. Please note that if you click x on the top left hand corner of your chart you will close the chart and reset your settings that you added. If you want to keep your studies and charts intact you can minimize it or just leave always keep it open to keep your settings saved.
F. Now we will add 3 more indicators below the chart to help us confirm the trend, and to help us identify exact entry and exit buy or sell signals. The following indicators give us insight into the momentum, direction and overbought/sold indicators. Used along with the Exponential Moving Averages, Parabolic SAR and Bollinger Bands—these indicators can be very helpful to the day trader.
MACD Histogram.
Read about how to trade the MACD Histogram here:
http://www.incrediblecharts.com/technical/macd_histogram.htm
Relative Strength Index (RSI)
Read about how to trade the RSI here:
http://www.incrediblecharts.com/technical/relative_strength_index.htm
Slow Stochastic
Read about how to trade the Slow Stochastic here:
http://www.incrediblecharts.com/technical/slow_stochastic.htm
Now add these studies to your charts.
Under Studies click on MACD Histogram and use the default settings (9,Exponential, 12, 26, Close, Exponential) and set the line width to 2. Your study will automatically open under your chart.
Under Studies click on Relative Strength Index and set it to 14 and set the line width to 2. Your study will automatically open under your chart.
Under Studies click on Slow Stochastic and set it to (5,3,3, Exponential) and make the %K line blue with line width 2, and the %D line red with line width 2.
Your chart, with all the studies on it should now look like this (example of USD/CAD 10 min chart): Notice that I clicked on the zoom in button a couple of times on the bottom right hand corner to get it to look like this.
Set up your charts
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Set up your charts
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Set up your charts
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