Peter Bain Forex Trading Commentary for Friday May 12, 2006

Forexmentor.com Forex Trading Price Action

For those of you who are still struggling with the concept of MACD neutralization, well here's yet another example today.... a downtrend continuation pattern wherein, once MACD neutralized back up to the waterline during the consolidation or equilibrium phase, price then swooned, while MACD went oversold once again - but not as over-sold as when the period of neutralization got underway. Further note, on the 15 minute chart for the Swissy I'm referencing, that the end result of all this was positive MACD divergence well after the London open. Yesterday, we had negative divergence at the London open. You hear me talk about neutralization and divergence often enough that, if you master these concepts, you're well on your way to making serious money trading currencies.

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Peter Bain Forex Trading Commentary for Thursday May 11, 2006

Forexmentor.com Forex Trading Price Action

Remembering that the Swissy (USD/CHF) is still technically in a downtrend, I viewed the rise into today's session with suspicion. Sure enough, we experienced negative divergence on MACD to price, just after the London open. That was followed by Tom DeMark trendline analysis, and a subsequent Joe Cheung price projection, that saw price tumbling to 2200 - and there it went, just like magic folks! The pair was in a sell area - above the central pivot point, before it swooned. Now you see why I focus on the London open. It consistently offers up good trading opportunites, and is easy to trade, if you know how to look for a confluence of events.

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Peter Bain Forex Trading Commentary for Wednesday May 10, 2006

Forexmentor.com Forex Trading Price Action

The Swiss franc (read USD/CHF) put in a 1-2-3 top just after the London open yesterday, followed by a 'death cross.' Of course, that was all presaged by Stochastics (STO) being overbought on the hourly chart, and the overall trend being down - still. What followed was a downtrend continuation pattern, facilitated by MACD neutralization. Then came MACD divergence, shortly after the London open today. The concepts of neutralization and divergence are very powerful and, once you understand them, you can use them consistently to improve your trading results. Don't forget that the 'Three Muskateers' (CHF, EUR, GBP) move in tandem - so, if you see a good trade setup on one, why not execute it on all three pairs. More money in the bank, with little extra effort.

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Peter Bain Forex Trading Commentary for Tuesday May 9, 2006

Forexmentor.com Forex Trading Price Action

If you believe what you see on the higher level charts for the Swissy, the trend is still down. The London open continues to offer up good trading opportunities.

Yesterday's open was followed by a swoon in price. Today was no exception. Following a counter-trend run, that started yesterday early am, we witnessed a good short trade, again at the London open, that was worth 20 pips. It was facilitated by MACD negative divergence and a Tom DeMark trendline break, all the while price was above the 89 and 144 EMAs and in a sell area (above the central pivot point).

See today's chart at: http://www.forexmentor.com/campaign/may0906.html

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