Tuesday, March 20, 2012
We begin today's webinar with a brief explanation of the current price action for the EUR/USD pair and why it is important to understand the characteristics of a true trend in the market. Most trends and price movements are characterized by impulsive & corrective waves in price (extenstions & pull-backs) and without this understanding of price movement, you will have difficulty placing successful trades in any market.
We also discuss why it is important for short-term traders or scalpers to understand the overall market picture when trading the shorter time frame. You should not only be able to comprehend the long-term market bias within your trading instrument. But, there are also trendlines, moving averages, and areas of support & resistance that can only be identified on your larger time frame. Without a higher time frame analysis, you will never be able to determine which part of the market cycle the asset is currently trading in.
Monday, March 19, 2012
During most of today's trading session, price was moving within a consolidation pattern, but once news was released about last week's ECB bond purchases, we saw a 123 pip rally in the euro pair from its session low at 1.3142 to the session high at 1.3266. The pair is currently in consolidation ahead of the Asian Open.
In today's technical analysis video, we discuss price action within the EUR/USD pair and identify trade entries around common areas of support and resistance.