Commentary on the USD/CAD

Forexmentor.com Forex Trading Price Action

While we all fish for bottom on the USD/CAD pair, we cannot lose sight of the fact that moving averages can be deceptive, especially at market turning points. Case in point: If you had relied on the Guppy System during the last turn in this pair (south of the 1-2-3 top, back in March), you would have missed the turn – if you were solely focused on the weekly chart. So, you have to not only keep an eye at that level for the overall trend, but also evaluate what the other indicators are telling you, and what you see on the daily chart.

Once you detect that a pair is, in fact, turning the corner, you can then execute your position trades off the hourly chart to get a better entry point, with limited risk. Zac Zacharia addressed this concept in my presentation of his method in the June 20/07 AM Review at http://www.forexmentor.com/. Each Wednesday, I present a new lesson on things we have learned from previous submissions. Don’t miss the next one this week!

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