Using a Stochastic Oscillator

1- Identify a trend
2 - To increase the chance of a successful trade (with the trend), look at buying only when the stochastic goes below the oversold zone).
The green arrows on the chart highlight where price corrected and the green arrows on the stochastic highlight an oversold condition.
The red X doesn't count as we see a trend change.

With a steady flow of buying in play, EUR/USD is approaching the bullish trendline.

If the trend is going to continue, a couple of options to look out for are a bounce off the trendline or possibly a rejection of the 61.8% Fib level.

Whatever you think, look for a trade that meets your strategy rules.

In the Autumn we saw USD/CAD test the 1.3730 zone on three separate occasions. All three times price rejected the area.

Now we see price at the same zone and is initially rejecting again.

Will we see a rejection for a 4th time?

NZD/CAD

Price broke out of the descending channel on 26th November this year.

We then saw a correction take place and price is now potentially breaking out for another bullish impulse.

Look for a trade that meets your strategy rules.

As the holiday season is upon us, we wanted to take a moment to extend our warmest wishes to you. This year has been filled with market twists and turns, and we sincerely appreciate your trust and partnership.

May your profits soar like a bull market and your losses be as fleeting as a bearish trend. Here's to a prosperous and successful year ahead, filled with pips, profits, and positive trends! 📈🎄

To increase the chance of success in trading with the trend, we can look at potentially selling only when the stochastic goes above the over bought zone (above 80).

The red arrows on the chart highlight where price corrected and the red arrows on the stochastic highlight an overbought condition.

Traders can see charts in different ways.

For every buyer, there's a seller or maybe you use moving averages and another trader refuses to use them.

Respect each others strategies and ways of trading. If it works for you then that's all that matters.

Check out some of these common reversal patterns that you might see in the Forex markets.

Choosing good risk to reward trading setups could help you become a successful trader in the markets. This may be something that you implement into your own trading strategies.

The upwards trajectory of Gold is clear for everybody to see, however there is something of interest to notice.

With price making higher highs but the MACD showing divergence (printing lower highs), could we be in store for a correction?

Also note the rising wedge pattern, typically seen when a bullish trend is running out of steam.

For the moment buyers are still in charge.

Whatever your opinion, look for a trade that meets your strategy rules.

In mid December we saw price test the 1.3730 support level but after a small push from the buyers, the sellers took control and closed price below the level.

Now as price retests, we see if the sellers dominance will continue.

Possible targets for shorts could be 1.36

Whatever your thoughts, look for a trade that meets your strategy rules.

During the last couple of daily corrections, CHF/JPY has pulled back into the zone between the blue 20EMA and the red 50EMA. That was in November and December with the October correction finding support actually at the 50EMA.

With price now correcting the last impulse, could we see a repeat of what happened previously?

Look for a trade that meets your strategy rules.

The Bearish Flag pattern.

Price makes a bearish impulse.

When the impulse has ended, price makes a correction to the upside (a small uptrend) in between sloping support and resistance.

When the correction ends, we see the next bearish impulse.

NZD/CAD has rejected 0.7880 for a second time with a bullish impulse.

On Friday, price printed a bullish pin candle indicating that the next impulse is potentially on the cards.

Look for a trade setup that meets your rules. Possible targets for long trades could be 0.8660 where we previously saw resistance.

There is a strong bullish trend in play for EUR/JPY with JPY weakness prominent throughout the market.

A daily close above the counter trend line could signal the next bullish impulse.

Watch for a breakout and a trade setup that meets your strategy rules.

The daily chart for XAU/USD is still bullish overall with no sign of the trend changing at this moment.

There is a trendline seen on the H2 chart where we could see price pull back to and test/reject.

You don't need to place lots of trades and take big risks to be a successful trader. With the power of compound interest, you can make serious gains to your account just by making a small percentage each month. If you let your money grow, the results can be amazing.

AUD/CAD Daily

Price broke out of the box range in early January 2026 with a bullish impulse.

Since then, we have seen a consolidation in price.

This could mean another bullish impulse is around the corner.

Whatever your thoughts, look for a trade that meets your strategy rules.