The remainder of the trade I was in (from 1.0453), profit stopped out at +50 pips in yesterday’s zippity-doo-dah dip. I bought again at 1.0490. I don’t think I have to list my reasons for doing so since they’re in yesterday’s blog.
Trading is fairly boring today. The low this morning was 1.0450; it reached a high of 1.0530. The pair’s daily, average true range (ATR) is about 135 pips so it’s running slightly behind that. ATR is a measure of the average number of pips that a pair moves in any given time period. It can be useful for judging volatility and for giving you an idea of how much potential may be in any given move.
On the hourly chart, the pair displayed a double bottom with the pattern confirmed when it moved above 1.0493. However, as I said, it only reached 1.0530 before falling back in what must have been a sort of a faint as in faint-hearted. But maybe it was a feint. What a cheery thought! I don’t like these candles with the shadows, though.
Here’s the three-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.