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Major Pair 4 Hour Momentum Review

Bollinger bands are designed to signal a trend continuation or reversal, and when used to work off the center line breaks, rather than trading the outer band action, can be a good secondary confirmation of potential price action to come. As a stand-alone indicator they sometimes struggle to keep up with price action, but on a daily chart, and with the right outlook, they can be very reliable.

Once the outer bands are violated one of two things will happen; there is a continuation of the current trend and direction, or a reversal to the center line takes place. Looking for the center line to be broken after a reversal off the outer bands tends to indicate that a continuation to the opposite outer band will happen.

TheLFB Sep 29 09 Euro

 

 

 

 

 

 

 

Euro: Struggling to break the center line at 1.4650 and make a move higher, to test the outer topside band at 1.4750. Short-sided trend (long dollar) in place with 1.4550 being the outer band target area to work lower from. Wide bands equal volatility. The center line break or failure is determining the next move

TheLFB Sep 29 09 Gbp

 

 

 

 

 

 

 

Cable: Struggling to break the center line at 1.6000 and make a move higher, to test the outer topside band at 1.6200. Short-sided trend (long-dollar) in place with 1.5750 being the outer band target area to work lower from. Wide bands equal volatility. The center line break or failure is determining the next move.

TheLFB Sep 29 09 Aus

 

 

 

 

 

 

 

Aussie: Hitting the outer top-side band at 0.8780 and now waiting on the reaction to either hold the line, or reverse to the center line. Neutral trend in place with 0.8700 being the next short-sided target to work lower towards. Wide bands equal volatility. The outer band reversal or hold is determining the next move.

TheLFB Sep 29 09 Cad

 

 

 

 

 

 

 

Cad: Struggling to break the center line at 1.0850 and make a move lower, to test the outer short side band at 1.0750. Long-sided trend (long-dollar) in place that is being tested with 1.0800 needing to hold if that is to stay in place. Wide bands equal volatility. The center line break or failure is determining the next move.

TheLFB Sep 29 09 Swiss

 

 

 

 

 

 

 

Swissy: Struggling to break the center line at 1.0300 and make a move lower, to test the outer short side band at 1.0250. Long-sided trend (long-dollar) in place that is being tested with 1.0300 needing to hold if that is to stay in place. Wide bands equal volatility. The center line break or failure is determining the next move.

TheLFB Sep 29 09 Yen

 

 

 

 

 

 

 

Yen: Struggling to break the center line at 90.10 and make a move higher, to test the outer topside band at 91.50. Neutral trend building with 89.00 being the outer band the pair worked higher from. Wide bands equal volatility.  The center line break or failure is determining the next move.

Building a trading plan around these moves, and learning how to control expectancy and cap exposure are covered in TheLFB on-line Training Academy Courses.

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