Obviously, I didn’t get profit stopped out of my long that is now up 183 pips (as of 9:52AM EST)and clearly, 1.67 didn’t hold as resistance. I took at bit more off the table at 170 pips. As I wrote earlier this morning, one had to watch price and RSI around that level before deciding what to do. The candle bodies became longer on shorter-term charts and RSI surged up into overbought. RSI is not yet overbought (although it’s close) on the three-hour chart. Now we have to see if 1.6785 will hold but as of now, it looks as though it might.
© 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.