Monday, 22 June 2009

FOREX Trading Review Video 22 MAY 09 EUR/USD : Counter Trend (Channel resistance)

EUR/USD short trade based on the price action reaching top of channel. Risky trade, where I show you what to look for:

- Series of 4H spinner closes showing trendline resistance, and lack of momentum to break price channel.
- After the belt holding candle close at 16:00 (21/05/09) the small candles show a lack of momentum & emotion to the upside which you would expect with such a positive close.
- Large MACD divergence on the 1D chart.
- Price action is a large distance away from the 8EMA on the daily chart, so per palmer i'm expecting it to fill the gap.
- Price found resistance on the 161.8 fib extension.

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