Forex Training Blog

Feb 25th was an M2/M4 day.  At M2, price failed to penetrate M2 and formed a triple bottom consisting of a quasi railroad track and a long hammer.  Trendline break at 08:00 at the pivot point.  Drilled down to the 5 minute chart to confirm price break through and test of the central pivot. As price punched through M3, price did retest M3.  M3 then provided support for price to travel to M4. 

This training video is available at this link:
http://www.forexmentor.com/video/m2m4-example.html

Here’s an example of a trendline trade where profit consisted of 57 pips per lot per hour or $142.50 per hour over 4 hours.  Construct various trendlines and look at the divergence between MACD and price.

This forex training video is available at this link:
http://www.forexmentor.com/video/example-trendline-trade-patricia.html

There’s a story here worth repeating - what railroad tracks should look like at the end of a downtrend.  Railroad tracks consist of price collapses, closes low, opens low and then closes high. Then price reverses. 

This forex training video is available at this link:
http://www.forexmentor.com/video/end-of-run-determination.html

It’s important to reference the 15 minute chart to an hourly chart.  Wait for MACD on the hourly chart to turn before making decisions based on the 15 minute chart.  Making a decision on divergence prevents you from taking an erroneous signal. 

This forex training video is available at this link:
http://www.forexmentor.com/video/different-time-frames.html

Looking at a COT chart for the Australian dollar and price action.  The divergence between hedge funds and dumb money say’s it’s game over. 

This forex training video is available at this link:
http://www.forexmentor.com/video/cot-02.html