Peter Bain Forex Trading Commentary for Friday May 5, 2006

Forexmentor.com Forex Trading Price Action

Yesterday, I called for a top on the Swissy at ~2420. That price target was met, beyond which the USD/CHF pair tumbed down through the London close, thereafter reversing in the form of a major hammer and MACD histogram and regular divergence.

There is no doubt about it, the Swiss franc is in a freefall, and what we are witnessing on the 15 minute chart is nothing more than a feeble attempt to consolidate, before further weakness ensues. Don't second-guess what you see on the higher level charts (read, monthly, weekly, daily), as they don't lie and, where you see counter-trend moves on the lower level charts, these merely represent good opportunites to trade them, and then pull the trigger the other way - in the direction of the overall trend which, in this case, is down.

See today's chart at: http://www.forexmentor.com/campaign/may0506.html

See latest sample AM Review at: http://www.forexmentor.com/sampler/

Peter Bain Forex Trading Commentary for Thursday May 4, 2006

Forexmentor.com Forex Trading Price Action

Yesterday, we had a counter-trend reversal on the Swissy at the London open. I indicated that we should look to sell that rally in the prevailing downtrend. Well, that opportunity came in the form of negative MACD divergence to price, going into the London close. It was quickly followed by a reversal to the upside, facilitated by quasi-railway tracks. A subsequent Joe Cheung price projection saw the USD/CHF pair rising to the ~2415 level, and there it went into today's session.

See today's chart at: http://www.forexmentor.com/campaign/may0406.html

See latest sample AM Review at: http://www.forexmentor.com/sampler/

Peter Bain Forex Trading Commentary for Wednesday May 3, 2006

Forexmentor.com Forex Trading Price Action

Yesterday's slide in the Swissy, that started at the London open, continued on through to the NY close, after which price slithered sideways - albeit still in a downtrend (according to the 89 and 144 EMAs). Further weakness saw the USD/CHF pair collapse into the London open, at which time positive MACD divergence and railway tracks caused a counter-trend reversal. We are still following the theme of 'selling the rallies in a downtrend,' so that upward move was seen as short-lived, given how it met resistance at the centralpivot point and the moving averages.

See today's chart at: http://www.forexmentor.com/campaign/may0306.html

See latest sample AM Review at: http://www.forexmentor.com/sampler/

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/