Yesterday I tried a short in the Euro and was fairly quickly stopped out with a loss of 25 pips. Why such a small stop? I wrote yesterday about the mixed signals on the chart and I wasn’t going to take on a wide stop in that environment. Late in the day, around 5 PM EST, I bought at 1.4654. You can see this trade on the hour chart above. It’s now profit stopped.
Note the interesting way it’s running into resistance again at 1.4750, the same levels it has had problems before. Also, the candles look indecisive now—there are smaller bodies and lots of upper shadows, indicating higher prices are being rejected. It doesn’t mean it can’t rise above these levels but there’s a bit of a struggle going on.
Do you see my two trend lines? One is drawn from the price low and the other from a level above that where there seems to be some support. Usually I get better results with Fibonacci calculations and with trend lines when I run them off a price level that the pair seems to respect in some way, i.e. it has touched it more than once. The extreme low or high can be just that—an extreme that doesn’t mean much.
Equity futures were bidding up this morning and the US stock market just opened with a bounce up so today may be a dollar drubbing day. But we’ll have to see after an hour or so.
Note the interesting way it’s running into resistance again at 1.4750, the same levels it has had problems before. Also, the candles look indecisive now—there are smaller bodies and lots of upper shadows, indicating higher prices are being rejected. It doesn’t mean it can’t rise above these levels but there’s a bit of a struggle going on.
Do you see my two trend lines? One is drawn from the price low and the other from a level above that where there seems to be some support. Usually I get better results with Fibonacci calculations and with trend lines when I run them off a price level that the pair seems to respect in some way, i.e. it has touched it more than once. The extreme low or high can be just that—an extreme that doesn’t mean much.
Equity futures were bidding up this morning and the US stock market just opened with a bounce up so today may be a dollar drubbing day. But we’ll have to see after an hour or so.
This is not a trade recommendation. Remember that trading involves substantial risk.
© Dianne Fecteau, 2009. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.
© Dianne Fecteau, 2009. No part of this material may be reproduced in any form, or referred to in any other publication, without the express written permission of the author.
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