Peter Bain Forex Trading Commentary for Tuesday May 2, 2006
Forexmentor.com Forex Trading Price Action
One of the things I failed to mention in Friday's commentary is the fact that, when you are looking for the effects of MACD neutralization to dissipate, you should keep your eye on MACD on the 4 hour chart. When you see a turnaround there, then you know that the trend will reverse. We were looking for positive divergence to kick in on both the 1 hour and 15 minute charts, but that did not occur. The reversal came at the news hour yesterday.
The KTTN system would have worked beautifully at that time, putting some serious pips on the table. That was followed by negative divergence, going into the London open today which, again, offered up a good trade - to the short side, this time. The ensuing run down in price was halted just below M2 - the expected low on this M2/M4 day - in the form of railway tracks (aka tweezers). So, you see, there are countless trading opportunites that arise, if you are just patient enough to wait for them.
See today's chart at: http://www.forexmentor.com/campaign/may0206.html
See latest sample AM Review at: http://www.forexmentor.com/sampler/
One of the things I failed to mention in Friday's commentary is the fact that, when you are looking for the effects of MACD neutralization to dissipate, you should keep your eye on MACD on the 4 hour chart. When you see a turnaround there, then you know that the trend will reverse. We were looking for positive divergence to kick in on both the 1 hour and 15 minute charts, but that did not occur. The reversal came at the news hour yesterday.
The KTTN system would have worked beautifully at that time, putting some serious pips on the table. That was followed by negative divergence, going into the London open today which, again, offered up a good trade - to the short side, this time. The ensuing run down in price was halted just below M2 - the expected low on this M2/M4 day - in the form of railway tracks (aka tweezers). So, you see, there are countless trading opportunites that arise, if you are just patient enough to wait for them.
See today's chart at: http://www.forexmentor.com/campaign/may0206.html
See latest sample AM Review at: http://www.forexmentor.com/sampler/
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