ForexGen | USD/CHF

This last trade is the USD/CHF.
The first chart is a 30 – minute chart.

There are some interesting things about this trade.
I have also included the channel lines as these can really help put thing in perspective.If you look at the chart you will see that %R at 22h00 was reading2.19, RSI at 22h30 was 77.01 and MACD was 0.00242.This all happened in the vicinity of point A on the chart.As you can see MACD and RSI started to turn down as expected but then the market continued up to make a slightly higher high at point B. This is called bearish divergence.
This happens when an indicator turns down but the market makes a new high.The opposite is true for bullish divergence.

ForexGen Trading Rules Short Trades

Rule 1
The 89’s and the 144’s on the 4 – hour chart and on the 30 – minute chart must both be in sell mode.
By sell mode I mean that at some point the 89’s have crossed below the 144’s.
Rule 2
The TI (trend indicator) must be in sell mode. The TI must just be
changing from up to down or already be in sell mode.
Rule 3
Once these conditions have been met then we use the 30 – minute
chart for our entry, exit and target. The 5 - minute chart is used to
monitor the position. It can also be used to enter the market once you gain more experience.
Rule 4
We only enter on a 38.2% retracement. You only place your stop loss under the 61.8% retracement and you only use the targets provided by the RPC.
Rule #5
You only select trades where the potential reward is at least twice the potential loss.