One More Zero. How to trade the Forex Like a Pro in One Hour by Peter R. Bain, Brent Strouse

By Peter R. Bain, Brent Strouse

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This is especially true of forward markets. Based on what is on the table in the present, what will tomorrow bring? Bar charts are the favoured tool of the technical trader. Such charts show the open, high, low, and close for a period of time. Price action is represented as a vertical line connecting the high and low with a short, horizontal tick mark on the left denoting the 50 opening price, and another on the right side for the close. S. S. closing. Bar charts can be created for almost any time period, from a few seconds to weeks, months, and even into years.

Therefore, be careful not to sell too quickly or buy too soon when price overshoots. 41 The challenge is to identify the overshoot and know when to outsmart the dumb money who are chasing the overshoot. You are probably wondering where the nine pivot points come from. They are all automatically generated by my Pivots Program. You should have a copy by now if you previously bought one of my products from me. com, and I’ll e-mail a copy to you. One further thought, if price action and the nine pivot points are way out of whack with each other, you may wish to recalculate them, as suggested earlier by Dr.

THE BIG CLUE In the above graph, you will notice that the comm. index and the spec index are at odds with each other at the spots marked X, Y, and Z. What this is telling you is that, with such extreme divergence of opinion or “sentiment,” the underlying tradable (the Swiss Franc in this case) is about to experience a reversal in price direction. That is because the commercials are either heavily long or short, and at a 100 or 0 reading, versus the 0 or 100 reading for the opposing side. This is the extremity you should always be looking for before looking for price reversal.

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