Peter Bain Forex Trading Commentary for Wednesday May 24, 2006
Forexmentor.com Forex Trading Price Action
When you are wondering where price is going, after a swoon in price on the 15 minute chart, take a look at the daily chart for the nearest trendline break - especially in a topping-out process.
For example, price put in a downtrend reversal pattern on the euro, as it reversed to test the trendline that was broken on the daily chart recently. Not only that, but we had positive divergence on MACD going into the London open, combined with a multi-bottom on price. Leg two up came in pretty much the same distance as leg one down.
See today's chart at: http://www.forexmentor.com/campaign/may2406.html
See latest sample AM Review at: http://www.forexmentor.com/sampler/
When you are wondering where price is going, after a swoon in price on the 15 minute chart, take a look at the daily chart for the nearest trendline break - especially in a topping-out process.
For example, price put in a downtrend reversal pattern on the euro, as it reversed to test the trendline that was broken on the daily chart recently. Not only that, but we had positive divergence on MACD going into the London open, combined with a multi-bottom on price. Leg two up came in pretty much the same distance as leg one down.
See today's chart at: http://www.forexmentor.com/campaign/may2406.html
See latest sample AM Review at: http://www.forexmentor.com/sampler/
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