As I blogged on Friday, I bought two positions in AUDUSD on Thursday’s dip. One hit its profit target at 9313 for 63 pips profit. The other, bought at .9242 is still open and is profit stopped at 50 pips.
The pair is still in an overall uptrend, yes, but it’s going through one of its periodic, “I don’t know if I can make it,” stages. Last week its high was .9370; so far it has had several candles reach .9353 on the hourly chart before falling back. It has dropped back to the short term trend line on the three- and one-hour chart. (RSI has already broken its uptrend line) The trend line needs to hold at .9315, the price that is also the floor of what will be the double top (on the three-hour chart) if it breaks. But there’s not a lot of downside based on the calculated profit target from this. The daily trend line comes in at .9040. Here’s the one hour chart:
© 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.