Friday, October 16, 2009

USDCAD Update and News

The long candle I pointed out on the 15-minute chart was a “result” of the news release of the Canadian CPI. I put the word in quotes because I don’t trade the news. I trade rigorously off technical indicators. I do believe that news can sometimes threaten an otherwise reasonable trade—the market is so emotional. But the Canadian CPI doesn’t explain why the dollar is largely up against many currencies this morning. Dead cat bounce, anyone? Or something more meaningful? It doesn’t matter. Watch the charts. Trade the charts. Don’t get locked into belief systems that have nothing to do with the charts.

© 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.

My purpose in writing this blog is to show you how one trader, me, makes trading decisions and survives while trading Forex. One of the biggest problems I had when I first started trading was trying to apply the “rules” to actual trades. Another was the psychology—limiting losses and letting profits run. If you study my blog you’ll see how I deal with both those issues. So my writings are not trade recommendations but rather educational in purpose. You have to decide on your own approach to trading. Remember that trading is risky.

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