Peter Bain Forex Trading Commentary for Friday October 27, 2006

Forexmentor.com Forex Trading Price Action

And, now on to the Swissy. The big dogs are extremely long this currency a la COT (Commitments Of Traders). Translation: They are extremely short the USD/CHF pair. And now back to my popular refrain: "Sell the rallies in the downtrend, folks." Haven't you heard that before? And, yes, if you know how to trade the retracements, do that as well. Today, we had price come into the session in a downtrend continuation pattern, wherein MACD neutralized back up to the waterline on the 15 minute chart, as price channeled sideways (price equilibrium or consolidation). Price rose to test the downtrending 200 EMA, only to collapse after the London open. Reminder: Use an oscillator like Stochastics (STO) to help facilitate picking the high spots of price action to sell. STO works well in a trending market. There you have it - another great opportunity to go hunting for short opportunities, courtesy the good folks at www.forexmentor.com.

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Peter Bain Forex Trading Commentary for Thursday October 26, 2006

Forexmentor.com Forex Trading Price Action

The Canadian dollar (USD/CAD pair) is hanging tough. Last time I checked, it was at 1288. So, the uptrend is intact, and everybody is happy again. All those tears have been wiped away. Now, let's get onto something new - actually, something old that's new again. Back to the euro. Last night, the 4 hr. and 1 hr. charts (a la MACD) foretold a rise in price. So, it was no surprise today that the euro was in full flight, having bottomed out at 1.2484 on 10/13 - pretty much where I said it would go way back in June (in response to COT data). No, I lied. Actually, if you recall, I said it would go to 2480, or thereabouts. Okay, I was off by four (4) pips. I'll try better next time. Now, maybe you'll believe me when I say the USD/CAD pair is in an uptrend?!

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Peter Bain Forex Trading Commentary for Wednesday October 25, 2006

Forexmentor.com Forex Trading Price Action

Back to the future: If you take a look at the monthly/weekly/ daily charts for the USD/CAD pair, you should be able to draw your own conclusions as to where the pair is going.I'll give you a clue - the trend is UP! I don't have room here but, in today's AM Review, I'll present you with some pretty convincing evidence that I know what I'm talking about.That said, I've been wrong before. Every trader worth his/her salt will admit to that. I'll focus my discussion on the daily chart in the AM Review this morning, for those of you who are members at http://www.forexmentor.com/. Looking at the 15 min. chart, you can see that we had a nice turnaround point yesterday PM - mid-afternoon New York session (facilitated byMACD histogram divergence and a spinning top). Price rose into today's session, headed towards M3 - the expected high for the day - but didn't quite make it. It looks like wewill have a period of consolidation/weakness before the pair can make any headway. For those of you who have a need for speed, this will NOT be a thrilling ride. So, you maychoose to work another pair. And, don't forget you have your sandbox (demo account) in play around in. You may wish to prove your trading strategies there, before goinglive.

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Peter Bain Forex Trading Commentary for Tuesday October 24, 2006

Forexmentor.com Forex Trading Price Action

Has anybody panicked yet over the USD/CAD pair? I detect from some of your e-mails that some of you have. Put your emotions in your hip pockets folks. There's no room foremotions in this business. If you keep your eye on the weekly chart, and know how to draw Tom DeMark trend-lines (as discussed in the members area at www.forexmentor.com), then you will soon realize that price action on the lower level charts is just noise. Witness the turnaround on Friday at 9 am ET (hammer and MACD divergence). We knew this would likely happen, based on the most recent Tom DeMark demand (support) trendline at that time. Where to place your stop, if you're position trading this pair? I would suggest five (5) pips below the number one point (of the 1-2-3 formation on the weekly chart), at a level not ending in zero. Now relax!

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