1) This is an ABC correction off first wave down that ended March ‘09
2) Euro formed an ending diagonal
What would invalidate the second belief is if Euro climbs above 1.5060. Otherwise, I’m shorting rallies. We’re currently at a .618 retracement of the move down from 1.5060 so I’ve placed a short trade. I’ll be watching RSI closely to see if it drops.
Here’s the chart:
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.