Thursday, December 3, 2009

AUDUSD—Upward Wedge

My short stopped at breakeven and I did not pile back in. The direction is still not clear but it will emerge eventually.

Looking at the 3-hour chart you can see the pair within a rising wedge. The steepness of the angle (just like on the monthly chart) and the maturity of the trend suggests it may resolve downwards. Regardless, it doesn’t have that much more to go before it breaks out. At this point, I’m waiting for a move one way or the other. Here’s the 3-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.

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