Free Forex Analysis for Week Commencing 30th November 2009

Hi. This analysis and the 1st video are examples of what members of our low cost forex mentoring service receive on a daily basis. Todays update is not so exciting because I am urging people to NOT trade tomorrow. Sometimes it is more important for you to learn when NOT to trade. Just sit and wait out the markets to settle down when they are too volatile, as was the case towards the end of last week.

Last week was one of the weirdest I have experienced in my six years of trading forex which led me on Thursday to advise you all to ” stop trading and walk away” until the current madness calms down. In an attempt to protect you from your own enthusiasm I have to tell you that apart from the outside chance of an M1 trade tomorrow, my advice is the same today. I strongly recommend, nay urge you, to leave the forex markets alone tomorrow.

However in the second video I do show a potential move that may be developing on the Euro which could replicate last Decembers 2000 + pips move on this pair alone.

There is so much uncertainty in the global markets at the moment and the markets are so jumpy as witnessed on Friday with lots of horrendous spikes, some for 100’s of pips. The Fed started the uncertainty with the announcement that they would not be overly concerned with a weak $US.  Then the news out of Dubai later in the week (They owe $60+ BILLION & want to freeze the repayments for at least 6 months). A lot of this is reportedly owed to major UK banks that could hit the Gbp value badly. Some commentators/ doom mongers are predicting that we are now in danger of the “World crisis, part two.”

So where does it leave the forex trader. We can make money whether the market is racing up or down, we just need to determine which direction. The ill-disciplined, gambler will be in there tomorrow feeding his ulcer, watching price race in his favour before coming back and wiping him out in a heart beat. Me? I will have a look to see if there are any M1 trades around the London open, I very much doubt it as the Asian session could be volatile & there is a good chance of some biggish gaps at the market open. If no M1 trades? I will go fishing!

However, this is only a temporary phenomenon. As I point out in the 1st of todays videos. We just need to be patient and let price come to us. This strategy has worked all year and will do so again in the near future.  Possibly even by Tuesday things will be a little clearer.

Last year at the same time of year, when the crisis started to break, was the start of probably the easiest 8 months forex trading of my career. We need movement. All I am waiting for is a clearer indication of in which direction. Last November we had some uncertainty and price moved sideways on many pairs and then in December I had a phenomenal month. Take a look at just the Euro/$ for December last year.

The bottom left arrow is December 2nd 2008. The top left arrow is the 18th December (2200 pip move straight up). The right hand upper arrow is anytime Christmas week/ New Years eve and that move went 1500+ pips.  Bear in mind people that we had already had 2500 pips worth of gains from the initial onset of the crisis going back to September.

I am not going to do any written analysis today as to what may happen tomorrow as I do not want you to be tempted to do ANYTHING! However in the second video Which is available to members of the daily mentoring service I show you a few other technical set ups to look for including some possible explosive moves on the Euro.

Also I will do a more detailed update tomorrow when hopefully this nonsense starts to calm down. I show you in video one how the Nzd/Aud to name a few are technically looking likely to reverse on the weekly & MONTHLY charts. We also had a lot of Yen triangle break outs in the last couple of weeks. The Gbp/Yen has so far done 1000 pips of the possible 1600 that such a break out theory suggests! So the bottom line is there are and will be trades out there we just need to hold fire a little while until the odds are more in our favour.

If you are relatively new to forex and/or the membership site, work your way through the forex strategies section. Start with the LMT (you do not need the LMT but there are lots of videos in that section that are vital for your forex success). Then move on to the M1, M2 & Powerband methods. All work as independent forex systems, but you will become a better trader if you can combine the various methods. My best advice is do not rush. Take your time and learn each one completely before moving on to the next section.

To view the video full screen, click over the you tube logo, bottom right. Please rate the video/post a comment on you tube. Have a great week, regards, marc

Video 1: The Current state of the markets & a few possible longer term trades

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