The uptrend continued on the EUR/USD

Forexmentor.com Forex Trading Price Action

Yesterday, I talked about the sloppy uptrend continuation pattern on the 15 minute chart for the EUR/USD pair, and the fact that it was interrupted by price achieving the expected low for the day (M2), before the uptrend continued. Well, the uptrend did continue on into today’s session, offering up a buy situation at the London open, in the form of Stochastics (STO) being oversold (at the 20 level).

An oscillator like STO is effective in a trending market by using it to look for overbought (OB) and oversold (OS) readings, depending on the prevailing trend. Something to watch out for now is the double form of negative divergence appearing on both forms of MACD – MACD itself and its internal histogram. The histogram is an indicator within an indicator – that indicator being MACD, of course. It is a reflection of what MACD is doing, and MACD is a window on price itself. For more on how to use indicators properly, please go to www.forexmentor.com.

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