Wednesday March 18

Good morning all! The chart above shows market movement for the Eur/Usd this morning. Notice the slight negative divergence coming into the London Session? This was a good enough sign to stop you from taking a Long position.

I'm considering adding a live chat to this blog so that we can take full advantage of all the resources available. Let me know what you think.

Wednesday March 11

Good morning! Hope everyone's doing great. Today's trading started with a slight positive divergence coming into the London Session. You will see the divergence clearly if you crank down to the 5 minute chart.

The positive divergence was an early warning signal that price may be headed upwards. We are therefore not surprised that price has been heading upwards so far.

Tuesday March 10

Hi everyone! Today is a good example of situations when I'm not very keen on entering the market.

The Eur/Usd had already moved about 100 pips before entering the London Session this morning. I'm usually very cautious when the currency pair I'm trading has covered a lot of ground before I have an opportunity to enter.

Also, the market looks a bit choppy and doesn't appear to be forming clear patterns around the pivot line. All the same, the trend is definately Up which means that you should ONLY look for opportunities to go Long (Buy) if you choose to trade around this time.

Friday March 06

Good morning! I got to my computer a little late today and as you can see, price was already well on its way. Usually, I don't get into trades when price has already moved this much unless there is a very clear pattern; for example, a clear retracement followed by a convincing continuation of the upward trend.

Q & A

Question:

I got a question about my MACD that doesn't look the same as yours.
My settings are High, 12, 26, 9 - what should I use?Also a Q about the time and date on chart. My chart showsFXCM server time. Does yours?And a last one for now :-) Why don't we use the pivot tool on chart?

Thank you,
Morgan

Answer:

hi Morgan,

your settings for MACD are okay. The only difference is that I use the 'Close' as my data source and not the 'High' as you stated in the question. You will however find that using the Close or the High as your data source makes very little difference to the appearance of the MACD.

The default setting for MACD on most charts is 12, 26, 9 and that's what I use. I guess the reason it looks so different is because of the different colour scheme on FXCM charts.

Important Note: I use a different charting package (not FXCM) for illustration purposes on this blog. This is simply because my FXCM charts are a bit colourful and may not lend themselves well to illustrative purposes.

Secondly, the FXCM charts (and entire platform) always show FXCM server time. This is actually okay and works fine with all our trading strategies. Please note that the charts I use for illustration on this blog always reflect the local time (which is currently GMT+1).

Thirdly, we do not use the pivot tool on the charts because I haven't found a chart where you can put the daily pivot on the 15min chart. Most charting packages only produce pivots for the timeframe you're viewing. This is why I have to manually draw the lines on my charts (using the line tool).

hope this helps!

Screenshot of FXCM chart showing MACD:

Thursday March 05

Good morning all! First off, I'd like us to take a quick look at a shot of yesterday's trading.



The screenshot above shows how effective the pivot points were during yesterday's sessions. Yesterday, the trend was Up but so far, the reverse seems to be the case for today's trading. Here's a screenshot:

Tuesday March 03

Good morning all! Sorry I didn't get d chance to post yesterday. I hope you were still able to get some practice trades though.

Today we can see a rise in the Eur/Usd starting after a divergence that occurred around 12 midnight GMT (shortly after the close of the New York Session).

Coming into the London Session this morning, you'll notice that the price has been ranging in-between the 1.2628 and 1.2679 pivot lines. We'll be watching to see if price eventually breaks out of that trading range before the end of the London Session.