Several readers have emailed recently asking how I employ the datasets published here. Having worked with them over many years I have developed an approach that combines the use of daily projection levels with one or two conventional technical indicators for intraday trade entry and exit timing. My preferred indicators are 14 Unit RSI or Slow Stochastics. I find that 14 unit RSI is most comfortable for me to work with using 75 and 25 as my OB/OS parameters.

If for example we are approaching R2 or R4 (InR/KyR) and the RSI reading is in the 75+ range on a minute chart, I will use that as a potential takeprofit level in order to repostion for later re-entry or to go flat for the day. The reverse would be true in the case of S2 or S4 tests (InS/KyS) and RSI values in the sub 25 range.

Intraday tactics can also be developed using the R/S levels. For example assume that we have traded to the daily projected high and the program indicates an Overbought market condition it would be tactically wise to have a trailing stop to exit open longs positions (or perhaps to reduce them if you trade multiple units) if we subsequently fall two R levels. The smae could done in reverse using a scenario wherein the daily projected low has been hit. In which case a subsequent rise of two S levels could be used as a trailing stop. Certainly an extremely aggressive trader might use a one R or S level stop as well.

Others uses for the six R/S levels generated by the program (as well as with full data subscriptions) can be developed. Many users watch price behavior, particularly at R2 (Initial Resistance or InR), R4 (Key Resistance or KyR), S2 (Initial Support or InS), S4 (Key Support or KyS), as well as the daily high and low price projections as a measurement of market strength or weakness to formulate their own tactical plans.

In short, whether you are an FXDATA user or FXAnalytics subscriber, the data available can become an extremely important tool to use in plan daily starategies and tactics.

(Please bear in mind too that the full datasets in the subscription reports also provide additional R/S levels as well as proprietary daily OB/OS and trend indicators that I can also factor into my decision process).

Similar tactics could of course be employed using Stochastics with equally sound results.

These are simply some of my thoughts on trading which I pass along to assist readers in developing their own individual approaches to dealing with FX trading. As such there are no guarantees (implied or otherwise) and using the datasets provided here and any other information on this website are at your own risk.

Your comments on trading tactics are welcome.

If you have a specific set of strategies and tactics you use please feel free to submit them and I will be pleased to share with other readers.