Peter Bain Forex Trading Commentary for Wednesday November 8, 2006
Forexmentor.com Forex Trading Price Action
Referencing the pound today, COT sees the Big Dogs as being net short this currency. Well before the London open, the 1 hour MACD was signaling bearishness (it being below its trigger line, and heading down towards the waterline), and the 15 minute chart was showing signs of a downtrend continuation pattern in the works. And, of course, that pattern came to fruition after the London open.
One of the things to look for when you suspect that a downtrend continuation pattern might take place is to watch the behavior of MACD on the 15 minute chart. There, you will see it neutralize back up to the waterline - in this case - all the while price slithers sideways in a price equilibrium (or consolidation) pattern.
Once MACD has neutralized at the waterline, this then sets the stage for further price weakness, and MACD heads south accordingly.
We have a module in the library at ForexMentor.com that addresses the various price patterns you will encounter when you are trading the forex. See you there - and at the top and at the bank! Ka-ching!
See today's chart at: http://www.forexmentor.com/campaign/nov0806.html
See sample AM Review at: http://www.forexmentor.com/sampler/
Referencing the pound today, COT sees the Big Dogs as being net short this currency. Well before the London open, the 1 hour MACD was signaling bearishness (it being below its trigger line, and heading down towards the waterline), and the 15 minute chart was showing signs of a downtrend continuation pattern in the works. And, of course, that pattern came to fruition after the London open.
One of the things to look for when you suspect that a downtrend continuation pattern might take place is to watch the behavior of MACD on the 15 minute chart. There, you will see it neutralize back up to the waterline - in this case - all the while price slithers sideways in a price equilibrium (or consolidation) pattern.
Once MACD has neutralized at the waterline, this then sets the stage for further price weakness, and MACD heads south accordingly.
We have a module in the library at ForexMentor.com that addresses the various price patterns you will encounter when you are trading the forex. See you there - and at the top and at the bank! Ka-ching!
See today's chart at: http://www.forexmentor.com/campaign/nov0806.html
See sample AM Review at: http://www.forexmentor.com/sampler/
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