I have the opportunity to correspond with many of you. A common attribute I see is this feeling of being overwhelmed with the amount of information that is out there, and how to apply this information to your trading.

Once you achieve a certain level of knowledge, you will soon trust your instincts and make trades based on education and not "gut". Not that "gut" or instinct is bad, but sometimes it can force you into bad trades, keep you in those trades longer, and prevent you from winning.

The Forecasts are a tool that are designed to aid you in your trading strategy. If you have followed the blog I have demonstrated many ways to trade the Forecasts. I want to add another level to your trading decisions by showing you how to use my Daily Chart set-up to get a "visual" of your options, and eliminate this overwhelming feeling you may have when you trade.

I use these charts every time I read the forecasts and make a trading decision. Although the forecast are designed to guide you into trades without charts, graphs etc, why not use a tool that can give you a great visual of what is going on with your pair.

You don't need to know anything to read these charts except have the ability to see lines crossing. Crossings indicate change and indecision, and when the lines are moving parallel to each other that is when the cash register is clanging.

So before your trade, check the chart to get a visual, and you might see something that prevents a loss. Below are simple instructions for setting up a chart to work in concert with the forecasts.

To manually set up these charts in your chart program of choice, do the following:

1. Set up a daily Chart with Candle Sticks
2. Attach an RSI to the chart with the following Parameters
   period =8
   apply to close
   fixed min - 0
   fixed max 100
   levels 30 and 70
3. Attach a Moving Average Exponential
   period = 8
   apply to First Indicators Data

You will notice on these charts at the bottom there is a relative strength index and a moving average. Every evening after you have made your pick, check the chart and take notice of the relationship between these two lines. If they are about to cross, this indicates a trend change. If they are moving apart the trend is intact.

As these are daily charts use the next day candle to confirm the direction of the trend.

So remember, whenever the rsi and ma cross look at the candle to determine the direction of the trend. Click on Picture Below to see a blow up of the chart.