This afternoon, my buddy and I were talking about the Forex markets. We were looking at the EUR/USD pair and noticed a nice head and shoulders pattern. I explained that we would be looking for a pull back to a retracement area that would line up with resistance on our MACD BB indicator. Sure enough, we got price action, with a great momentum set up. Currently, it has hit two of my targets and looks like it has more down to go.

This is a great example how these principles apply to every market. E-minis are my favorite, and it looks like Forex is right behind that.

Click pictures for a closer view.

Filed under: Trade Log, Trading by Chris Dunn