Mark Whistler discusses Forex markets and current state of affiars within global financial crisis at the Forex Trader's Association in Houston on Saturday, October 18, 2008.

1. "It's the possibility of having a dream come true that makes life interesting" - Paulo Coelho, The Alchemist

2. Mark Whistler is a trader, author and analyst. Whistler is a contributing Senior Market Strategist at TradingMarkets.com and heads the currency trading Service: Forex Force. From time to time Mark can be seen on CNBC and is a regular contributor to FXStreet , discussing currency trading and global markets. Whistler is one of three founders of Tekonomix Partners, a a privately-held partnership, helping corporations connect to capital, while also laying out strategic infrastructure and planning to achieve the highest possible shareholder value. His books include: Trade With Passion and Purpose (John Wiley & Sons, Inc. 2007), Trading Pairs (Wiley, 2004), Profit from China (Investment U/Wiley, 2006) and Profit from Uranium (Investment U/Wiley, 2006.) Mark’s newest book, The Swing Trader’s Bible (John Wiley & Sons, Inc.) - co-authored with CNBC/Fox News regular guest Matt McCall - will be on shelves in December, 2008. Mark Whistler is also the founder of WallStreetRockStar.com , and is a regular columnist for TraderDaily.com and Investopedia.com . In his spare time, Mr. Whistler operates the MarkWhistlerGallery.com and Eats For The Streets , a growing organization - dedicated to helping homeless across America.

8. I. The True Paradigm of Forex i. Fundamentals. ii. Technicals iii. Probability

20. Date: Tue, 14 Oct 2008 23:15:08 +0000 Subject: Re: Buy EUR/USD To: [email_address] Hey Mark, Just been stopped out. Is the update going to be out tonight? Regards Joe Date: Tue 10/14/2008 7:29 PM Subject: Re: Buy EUR/USD To: [email_address] all my gains from today gone, :(

23. Forex Fundamental Paradigm Rising Currency Interest Rates GDP Non-Farm Payrolls Personal Spending ISM Inflation CPI Micro Factors Home Sales Consumer Sentiment News Topic ‘de jour’ ( oil, food shortage, etc) Micro Factors OIL TRADE POLICY POLITICS

24. Forex Fundamental Paradigm Falling Currency Interest Rates GDP Non-Farm Payrolls Personal Spending ISM Inflation CPI Micro Factors Home Sales Consumer Sentiment News Topic ‘de jour’ ( oil, food shortage, etc) Micro Factors OIL TRADE POLICY POLITICS

25. ! National Debt Trade Balance LIBOR Rates Falling Currency Interest Rates GDP Non-Farm Payrolls Personal Spending ISM Inflation CPI Micro Factors Home Sales Consumer Sentiment News Topic ‘de jour’ ( oil, food shortage, etc) Micro Factors OIL TRADE POLICY POLITICS

28. Know the Schedule

40. The News: On Tuesday morning, the euro tested 1.6000, posting a new all time high. The Breakdown: Comments from ECB and FOMC policymakers have been the main catalysts for the dollar's decline and the euro rally lately. Clearly, policymakers have an agenda. Posting new all-time highs last week, there was question over the weekend whether the EUR/USD would be able to make new highs. Then, on Saturday, ECB member Axel Weber told the press, "I am concerned that, with regard to the conduct of wage and fiscal policy, the recent temporary heightened inflation rate could be consolidated for longer than is necessary above the tolerance level of the Eurosystem," (Bullish euro comment.) Early Tuesday evening, the dollar began to recover slightly, just before ECB member Noyer made additional comments that a rate hike could be looming. (Bullish euro comment.) In Addition, ECB Governing Council member Yves Mersch told the Financial Times the question of a rate hike is 'fully justified.' Mersch could not have made a more euro-bullish comment.

41. The Bottom Line: Increases and cuts in interest rates are a band-aid to a larger problem. It's clear that both the U.S. and Euro Zone policymakers have their own agenda. Fact is, a stronger U.S. dollar would help ease the price of oil. What's more, protectionist trade policy, like tariffs on Brazilian sugarcane ethanol, only fuel inflation through keeping agricultural prices artificially high. Rate cuts and hikes are band-aids, while trade policy, credit policy and debt are the real problems. Policymakers who constantly make interest rate cut comments to media, but not discuss the real problems - clearly have an agenda, which may not truly be aimed at helping consumers, but rather big business and the Government instead. The ECB clearly wants the euro to move higher, as seen in multiple press-comments about an interest rate hike to ease inflation. Because oil is traded in U.S. dollars, when the dollar falls, Europe enjoys cheaper oil. Again, driving the dollar lower through comments about an ECB hike is a band-aid. Trade and fiscal policy supporting high oil prices and agricultural protectionism - are the real inflationary problems. URL: http://www.tradingmarkets.com/.site/forex/commentary/MarkWhistler/-76566.cfm

64. $1 of $100 is 1%. Just one year ago, at the beginning of 2007, a $1 move would have been (roughly) 2%. Sensationalistic headlines regarding "point" or "dollar moves" must be take with a grain of salt. Associated Press: Oil Prices Rebound After Falling $1 Friday April 4, 1:46 am ET - http://biz.yahoo.com/ap/080404/oil_prices.html

65. Part II II. Truth Behind Technicals i. The true paradigm of technical analysis ii. Why many technical indicators don't work anymore. iii. The art of the pitchfork to utilize mean/median line trading.

70. Pitchforks require: A rally, or trough, which helps identify the midpoint of the trend. A move, or trend prior to the rally, or trough, thus allowing us to find some semblance of the trend to be identified.

71. Traditional technical analysis requests that we connect two, or more lows (or highs) to draw the median line on a pitchfork; however, this is inaccurate and draws a misleading trend. Instead, we want to find the last low (or high in a falling trend) before the trough, or rally.

72. Correct pitchfork is drawn using the last significant low prior to the trough. Then, parallel lines are drawn above and below the median line, thus giving us the expected “trend” where we can identify buy and sell points, while also keeping an eye out for reversals.

79. Much of the time, the 36.8% Fibonacci Retracement does not hold as a reversal point... Often a currency can “pop” above (or below) a retracement, then fail. Stops should be put above (or below) retracement points.

81. Real Trading Example from April 16, 2008. Pitchforks gave entries. Retracements helped us hold for a HUGE winner.

83. Example from April 20, 2008. Pitchforks help line up short-re-entries. Pitchfork support, or resistance coupled with Fibonacci retracements are double the jet power!

84. Part III III. Truth Behind Technicals i. The true paradigm of technical analysis ii. Why many technical indicators don't work anymore. iii. The art of the pitchfork to utilize mean/median line trading.

88. Locating the mean and median actually help us find the implied volatility range within the present trend. We can also find a breakdown (or breakout) point, where the mean changes.

90. Trendlines help identify reversals... While also helping to identify trend re-entry points when trading with momentum...

91. Using channel trendlines (a modification of pitchforks) and other tools like Fibonacci Retracements, we also increase our win probability dramatically.

92. We can use trendlines on intraday charts to identify median points, reversals and entry “zones.”

95. Traders must know how to use stops!

97. Pitchforks are great hard stop tools.

101. THANKS!