One of the golden nuggets of forex trading
Forexmentor.com Forex Trading Price Action
Bollinger bands are very useful in determining price direction. Standard settings are all you have to concern yourself with. Take a look at the 15 minute chart for the USD/CAD pair June 3-4/07. You will notice that, whenever the bands tighten, price explodes out the other end in a direction that is pretty much determined by the attitude of the 200 EMA. If it is sloping down, then price will invariably come out of the constricted phase of the Bollinger bands, and move in kind – down, in this case.
You will also notice with Bollinger bands that, once price exceeds one of the bands, it usually retraces within the bands, and heads for the other extreme – the other band. So, keep your eye on that 200 EMA, watch price exit a narrow channel of Bollinger bands, and head in the same direction – more often than not. Just one of the golden nuggets of forex trading info. you will find at: www.forexmentor.com
See latest sample AM Review at: http://www.forexmentor.com/sampler/
Bollinger bands are very useful in determining price direction. Standard settings are all you have to concern yourself with. Take a look at the 15 minute chart for the USD/CAD pair June 3-4/07. You will notice that, whenever the bands tighten, price explodes out the other end in a direction that is pretty much determined by the attitude of the 200 EMA. If it is sloping down, then price will invariably come out of the constricted phase of the Bollinger bands, and move in kind – down, in this case.
You will also notice with Bollinger bands that, once price exceeds one of the bands, it usually retraces within the bands, and heads for the other extreme – the other band. So, keep your eye on that 200 EMA, watch price exit a narrow channel of Bollinger bands, and head in the same direction – more often than not. Just one of the golden nuggets of forex trading info. you will find at: www.forexmentor.com
See latest sample AM Review at: http://www.forexmentor.com/sampler/
<< Home