This is how I understand it:
The daily signal gives you a trading idea with potential entry points. It also gives you targets which are important support/resistance levels for that day. What you need to do is watch for the price to reach the entry point suggested by the signal. If it reaches the entry point/area you have to look for confirmation to enter the trade. For confirmation you can use indicators or look for the candles on your chart to form certain patterns/formations etc. The target levels is where the price might stop moving in the desired direction.
I suggest you to read about candlesticks
, support and resistance
(Don't forget fibonacci and pivots.) and of course money management
or basically everything in the learn forex
section on the main page.
Once you understand candlesticks familiarize yourself with the candlestick alert system
, it alerts you when the candles mentioned in the candlestick guide
form on the chart. But remember that these candles are not confirmation of a trade. They only show indecision/possible trend reversals.
Piphut also has a pivot point calculator
. Once you understand what pivot points are you should also understand what this does. If you can you could also use an indicator which calculates them automatically, but whether you can use one or not depends on the platform that you are using to trade. For example I use MetaTrader 4 and I use TZ-Pivot.mq4
. There's also a site where they calculate them for you, it's ActionForex
(Don't forget to read the Note
part on that page).
Long story short:
Piphut's analysis only points out an area where you can possibly enter trades and gives you some other info. The rest is up to you.
Google and read about forex as much as you can. Pay attention to the comment section of the daily signal, sometimes valuable info is posted there.
I hope you find this post helpful. Good luck on your trading.