How to do a NZD/USD Probability Study

Hi fellow traders. I thought I'd share with you how to conduct a probability study on the New Zealand Dollar:

Step 1: Open a Daily chart and make sure you can see at least 6 months of data, then draw a trend according to what ever you see on the chart. This will be known as the Major Trend:

Step 2: On a 4 hour chart, identify the Secondary Trend (also known as the Current Trend) which is based on the most active cycle within the Major Trend you just identified:


Step 3: Identify the Minor Trend (60 Minute Trend) by drawing a trend within the Secondary Trend. This can be done on a 4 hour chart or a 1 hour chart. This trend will be based on the most active cycle within the Current Trend

Now that I have identified the 60 minute trend I also have the Direction of Highest Probability for today. For as long as the 60 minute trend remains bullish, the NZD's Probability will be bullish

Step 4: Add the 1 hour Fishing Stochastic to see if you have a trading condition (it must point in the direction of the highest probability)

If you have more questions, ask them here or subscribe to the chat room at http://www.stocksanalysis.co.za

Enjoy

Johan Kriek