Friday, November 6, 2009

EURUSD—Daily EW Count of Correction

Trading is boring this morning prior to NFP so instead of trading I’m taking another look at some of my Elliott Wave (EW) counts. As I’ve posted on my past Euro EW charts, these are my two “beliefs”:

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:

© 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.

USDCAD—Boring

USDCAD is holding right between or at my two purple support lines I indentified earlier this week. This is good, not because they’re “my” lines but because there has been no follow through on the sell-off from Wednesday. Given the sentiment against the USD, given the relentless upward march of commodity prices, and given the seven-month downtrend, this is nothing short of remarkable. Or maybe remarkably odd. What it may suggest is that nobody has the faintest idea what to do.

On the daily chart below you see the pair holding support for now. The uptrend line is coming in at 1.0474. Yesterday, I posted an Elliott Wave (EW) count on the USDCAD three-hour chart. On that chart I concluded we were either at the beginning of a third wave up or still in a wave four of one correction. If the latter is true then price cannot drop below 1.0430 or the wave count will be invalid.

The uptrend line on the daily chart is coming in at 1.0485. Ideally, the pair will not break below that uptrend line. Also ideal would be RSI climbing above 60.26 because it would indicate bullish momentum.

Another interesting thing on this chart is the time (in days) of the current rally. It didn’t quite exceed the prior down movement before stalling. Ideally it will resume. If so, it would be another hint the seven-month down trend is reversing. All we really have on the daily and three-hour charts are some clues, nothing definitive.

As to trading this pair, of course I bought on support yesterday (filled at 1.0623 and 1.0639). The trades have been above and below water. Currently one is up 10 pips and one is down 7 pips as of 5:57 AM EST. Perhaps there will be a definitive move after Non Farm Payroll (US) and Canada’s employment data this morning. Not that either of those should hold much in the way of surprise.

Here’s the daily chart. I’m not showing my trades on it because they would obscure the recent, small candles.
© 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.

Thursday, November 5, 2009

GBPUSD—Fast Move

In what I first thought was a data spike on the part of my broker but instead turned out to be a kneejerk reaction to the Bank of England holding the interest rate steady at .50% (Huh?), my little GBPUSD long that I entered into thinking it might inexorably drift back up to the top of its little range, made it up there in one spike. I bought at 1.6514 and the trade hit the profit target at 1.6582 for 58 pips profit.

The thing is that it hasn’t closed above 1.66 so I wonder what’s to come. The answer, dear Brutus, lies not in the stars but in ourselves, but only after we analyze the charts. Well, maybe it does lie in the stars. There are a lot of people who study the movement of planets as they relate to currency prices. Some of them seem like nice people and not crazy at all.
I’ve marked the range in blue on the one-hour chart. The little green circle is where my trade hit its rather modest profit target
© 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.

USDCAD—Three hour Elliott Wave Count

Here’s a reasonable, if you buy the theory, Elliott Wave (EW) count on the USDCAD three-hour chart. I use EW counts to gauge market psychology not for trading per se. On the chart below there’s a clear 5-wave pattern up from the low of 1.0208 in mid-March. It topped out at 1.0870 on Monday.

What’s less clear is the correction. It could be a completed ABC as I’ve labeled it. What’s nice about this, if it’s true and that’s a big if, is that the correction didn’t exceed 50% of the overall rise. This would have been 1.0539 whereas the low yesterday was 1.0597. If this correction is over then we should be ready to begin a third wave. Third waves are, as Prechter and Frost write in their book, Elliott Wave Principle, “wonders to behold. They are strong and broad, and the trend at this point is unmistakable” (p.80). Well, wouldn’t that be lovely? Will I have enough deposit slips? The only problem with this, and the one that should prevent anyone from committing their entire account to a long position on the USDCAD, is that we don’t know for sure this correction is over. I can make a case for how we could easily be in the first leg of a correction.

Another possible count is that we are in wave four of the move up. This is appealing because it would be different from wave two in character and price (what EW calls alternation) whereas wave four and two look very similar on this. Wave four might not be yet over but in this interpretation it cannot drop below 1.0430. That’s one of the three basic rules of EW—that wave four cannot get into the price territory of wave one.

Well, I’ve had my dose of EW this morning. The most recent candle closed at 1.0635. I’ve been long twice since yesterday, only to stop out slightly above breakeven. Here’s the three-hour chart. I’ve traced the possible wave four (the second scenario) in green:
© 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.

Wednesday, November 4, 2009

October Blog Results +1,994 pips

I’ve decided to start posting my trade results from trades I’ve mentioned on this blog. I don’t blog all my trades (I’d never have time to trade if I did so) but I do touch on many here as I tend to follow different pairs for a period of time. I had a little trouble combing back through my posts but believe I have it correct below. For the month of October the results are a net gain of +1,994 pips. In some of the trades, as I’ve noted below, I took partial profits. I wasn’t sure how to report those so I added them together, e.g. if I closed out half at 50 and the rest at 100, I count 150. I’m not sure this is the best way to represent this. If anyone has a better idea, please post a comment.

Regardless, it was a good month. I had a big advantage this month in that the market presented many clear opportunities. Finally, it’s clear the number was so high primarily from trading GBPUSD and USDCAD. I put a lot of analysis into these two based on what I saw on my charts. That’s what paid off. I have had losing months in the past as well and if I blog about trades that result in a net loss you’ll see them here. That’s why I post the charts that show my actual trades. Anybody can say they made pips in the market but they never show you the trades as they go.
Here’s the detail by currency pair, net gain or loss, and detail:

AUD/USD +25
1 trade -15 pips;
2 trades, one +10 and one +30

EUR/USD +42
2 trades at -25 pips each;
1 trade 2 pips;
1 trade +40 pips;
1 trade +50 pips;

EUR/JPY +40
1 trade +40 pips;

GBP/JPY +257
1 trade 57 pips;
1 trade 200 pips;

GBP/USD +611
1 trade partially closed at +154; remainder closed at +265; I counted them separately.
2 trades at +120 and +72

USD/CAD +944
1 trade +50;
1 trade partially closed at +200 pips with rest taken at +100 pips (I added these together)
1 trade 219 pips.
1 trade partially closed at +375. Remainder of trade closed in Nov. so will count then

USD/CHF +75
1 trade +75 pips

USDCAD—Correcting or resuming trend?

USDCAD has happily moved below the first correction level I listed yesterday at 1.6045-55. It’s now approaching the second one at 1.0580. RSI also dropped down below where I would have liked to see it go and is moving towards oversold.

I’ve made hundreds of pips with this pair over the last couple of weeks. I’m currently out of all positions. It’s time to back up and think about where we are with this pair:

1) There has been a run up for just over two weeks, from a low of 1.0208 to 1.0988.
2) It’s in an overall downtrend since March.
3) There are many dollar bears out there. What this means is that sentiment is generally against the USD.
4) Commodity prices are generally up. The loonie is a commodity currency.

All of these factors suggest bear market. As I wrote yesterday, the last couple of weeks could have been only a correction. As I also wrote the last couple of days, the pair was encountering strong resistance. If that’s what this is—resistance and the pair is reversing trend—then dropping back is normal. However I would be remiss if I didn’t write that 20 days is not enough to suggest a reversal of a seven month bear trend.

On the three-hour chart, the pair needs to get above 1.0681 to have a candle with a higher high than the last candle. Since this candle is still forming it’s not clear whether it will do this or not. Until it does, the pair is in a downtrend on this time frame, with lower highs and lower lows.

On the one-hour chart, the pair needs to get above the high of the last candle at 1.0636 to reverse the downtrend on this time frame. RSI is also oversold in this time frame.

Neither the 30- 15- nor 5-minute charts show RSI oversold. On these charts smaller candles are indicating indecision. This is common when a pair is approaching a support level. That’s why it’s called support. Buyers will come in at these levels; some sellers get nervous and take profits which means they’re buying as they unload their positions. The low this morning so far has been 1.0601 so it’s also hesitating at a round number. None of this is unusual.

It’s not quite at a level I indentified as support (1.0580). In the spot Forex market, activity tends to begin just shy of support levels. There’s no guarantee it will reach my level before turning up. There’s no guarantee it won’t reach it and continue traveling down to the next one.

If I buy here then I need to put my stop below 1.0580. Since that’s a support level one wouldn’t want a stop right on the level. You have to allow room for the spread and slippage.

The logical correction levels below this point are:

1) 1.0580, the purple line and the one it’s approaching
2) 1.0515, the uptrend line from the October low on the 3-hour chart. This has moved up from yesterday’s position at 1.0455
3) 1.0378

If the pair closes beneath the trend line at 1.0515 on an hourly time frame or above, then I may short rallies depending on what the charts show. If the pair approaches the low of 1.0208, I’ll need to also carefully study price action. Here’s the daily 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.

Tuesday, November 3, 2009

USDCAD—logical correction levels

USDCAD took a bit of a tumble today. This isn’t unexpected when you consider the strong congestion and resistance area I wrote about yesterday and this morning. Its low this afternoon has been 1.0655, a point it reached Friday. Clearly it likes this area. It served as a resting place on Friday. Perhaps it will be true again today.

There are four logical correction areas.

1) 1.6045 - 1.6055, which it has achieved and is a purple line on the 3-hour chart below.
2) 1.0580, give or take, the second purple line you see. It's polarity.
3) 1.0455, the uptrend line that began in mid-October.
4) 1.0378, the last logical level. Talk about going to the dogs.

Ideally, RSI will stay above the orange line I drew on that indicator which would indicate momentum is stable and not crazily falling off.

The pair could be entering a sideways range over the next several days from 1.0650 to 1.0800. My profit stops on my current trades are around 1.0630 so if they’re taken out I’ll probably trade this range.

The pair has had a long fall; it has only been in an uptrend for a couple of weeks. It could be basing. On the other hand this entire little two-week upswing could be a correction. If it is, then, whee, it’s going to be another ride down. Nobody can say absolutely what this is at this point and we shouldn’t be second-guessing it. The market will tell us soon enough. What we can do as traders is watch the charts. Find good entry points. Keep stops small. Those things can’t be said often enough. Here is 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.

EURUSD—Euro EW Update

Here’s an Elliott Wave (EW) analysis of the Euro since I usually do these on Tuesday.

For the last two weeks I’ve suggested an ending diagonal was forming on the Euro daily chart. Its correction in the latter part of last week certainly seems to bear this out. Prechter and Frost write in their book, Elliott Wave Principle, that an “ending diagonal occurs primarily in the fifth wave position at times when the preceding move has gone ‘too far too fast,’ as Elliott put it.” On the daily chart below you see the ending diagonal traced out in blue.

If my overall interpretation is correct—that this is a zigzag correction from the primary wave down that ended last fall—then the Euro has been in wave C of that zigzag. Of course as with any discussion of Elliott Wave, five people results in six opinions. It conforms to the rules of a zigzag which are:

1) It subdivides into three waves
2) Wave A always an impulse or leading diagonal
3) Wave B always subdivides into a zigzag, flat, triangle, or combination thereof (in other words, just about any old type of correction, right?)
4) Wave B never moves beyond the start of wave A
5) Wave C always subdivides into an impulse or diagonal

Since it has dropped below the lower boundary of the ending diagonal, a correction is possible back to the start of the ending diagonal which is 1.4510/60. This is also polarity and an uptrend line comes in around this point. It would be worth looking at as a buy if it gets there depending on what else is going on with the charts. Here’s the weekly 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.

USDCAD Pullback

USDCAD just dropped to a low of 1.0681 in the last 30 minutes. I bought on the bounce. The stop needs to be below 1.0650, the previous swing low although if you wanted to be conservative and just bought above 1.07 you could place it below 1.0675 (tricky in this volatile market). Once it climbs back to the blue uptrend line of the chart I posted earlier, the stop should be moved to breakeven if you’re conservative.

© 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.

GBPUSD—Back in the channel

Last Friday I opened two shorts in GBPUSD, one at 1.6555 and one at 1.6530. The 1.6530 trade hit its profit target this morning and earned 225 pips. The other one is still on. You can put on trades that earn over 200 pips as well. It’s a matter of doing the analysis, picking careful entries, and keeping your stops tight to keep the losses small.

Apparently the price point I indentified yesterday (where the two trend lines crossed) was not only uninteresting to GBPUSD but absolute anathema. A look at the three hour chart shows it is back inside its channel. This doesn’t mean it won’t climb out again, especially since it’s at a support line (the orange line). I wrote yesterday that the point where the red and blue lines come together shows a symmetrical triangle. While it fell below the uptrend line it could climb back in—pairs do it all the time. If it does, that might be a clue to lighten shorts and/or go long.

While the pair broke below the blue trend line, RSI is currently at its trend line. Normally I’d like to see RSI break the line first and then let the price break confirm the RSI break. But if RSI breaks, too, you have confirmation of the price move.

The current 3-hour candle (as of 6:30AM EST) is not yet decisive. Since my position is currently up 250 pips and I already have one profitable trade closed, I won’t do anything right this moment. But you can bet I’ll be watching this and the shorter time frame charts. The 15-minute has formed a hammer and price rose but has since dropped back. The one-hour chart is unremarkable at the moment except for some candles with upper wicks (a hint that higher prices are being rejected). 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.

USDCAD—still chopping around

Nothing much has changed with USDCAD. It has encountered resistance on the weekly chart and is fighting through a congestion area on the hourly P&F chart as I wrote yesterday.

The three-hour chart today shows the pair bumping its head on a downward sloping trend line. It’s well above its original uptrend (black) line which shows strength, as is the RSI. On the shorter uptrend line (in blue) it is reflecting divergence with RSI.

Ideally the indicator should move in the same direction as price. When both move together the indicator is confirming the price. If they move in opposite directions—price is moving up but the indicator is moving down or vice versa—it’s called divergence. It’s a hint of market weakness. Divergence can signal price is ready to reverse but it’s only that—a signal and not a guarantee. One big mistake a trader makes is to base trade decisions on only one thing. Divergence is a piece of the puzzle but it’s not enough to base a trade upon.

In this case, since the pair is obviously fighting resistance I’m not too worried about it. But I’m on guard and probably would not open new positions until it clears some of these hurdles or has a good pullback. A pullback to the blue uptrend line would be a buying point (around 1.0700/50 but you’d want tight stops) as would a pullback to the black uptrend line (around 1.05). There are not good hints for a short here but if one did so the stop should be above the recent high of 1.0875. Here’s the three-hour chart:

I am still in three positions. I lost one of my recent ones when it stopped out 10 pips above breakeven last night in a downdraft. The oldest one is up 378 pips, the second oldest 153, and the third 77. Unless we have another good pullback I’ve stopped buying until the pair shows it can clear the hurdles ahead.

© 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.

Monday, November 2, 2009

USDCAD—Why the chop?

Early this morning I wrote that it would be wise to expect chop today in the USDCAD because the weekly chart showed the pair bumping up against a significant, downward sloping trend line. It was also at polarity.

Looking at the hourly timeframe on the point and figure (P&F) chart, you can see another reason for the chop. It has reached a significant congestion area.

Whereas in other types of charts price change takes place with the passage of time, P&F charts record only price action. It’s an uncontaminated picture of supply and demand since the chart doesn’t change unless price changes by a predetermined amount. A column of 0’s mean price is going down; a column of X’s means price is increasing. My charts are three-box charts. This means price must decline at least three boxes before I start another column of 0’s or increase by at least three columns before I start a new column of X’s. It’s a bit tricky to learn (at least it was for me; I remember gnashing my teeth for several months) but I find the charts an invaluable tool.

In any case, when you look at this hourly P&F chart you see the high concentration of X’s and 0”s across the rows to the left of where price is now. This was an area where buyers and sellers were fighting it out, neither side gaining enough strength to make a decisive breakout until you see the long column of 0’s.

Not only is the pair is back in this congestion area. On the P&F chart it rose above a downward trend line from August. It’s our own little action movie—we don’t know for sure whether it will prevail or not against these headwinds. Just as the prior congestion area took a couple of weeks to form, we could see the pair buffeted here for a week or so.

I picked up two more small positions this morning when it dropped to 1.0740. Their stops are now at 10 pips above breakeven. Obviously I’m bullish on this pair. But I reached that opinion based on price action and I can change that opinion based on price action. On the hourly candlestick chart we’ve had a series of lower highs and this is a warning signal that it could be ready to retreat again, possibly all the way back to the lower trend line on this P&F chart (1.0520). Here’s the hourly P&F 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.

GBPUSD—Interesting 3-Hour Chart

Last Friday I opened two shorts in GBPUSD, one at 1.6555 and one at 1.6530. Currently they’re in profit at 173 and 148 pips respectively as of 6:40AM EST. Obviously I’ve moved my stop to a profit stop.

I wrote that the pair might fall back to its channel top on the daily which is what it did. I won’t try a long here although if I had no positions on I might do so. First, I’m reluctant to close two trades in profit. Second, if it falls back into the channel the potential profit is great. Since I have both trades profit stopped I have no risk.

The three-hour chart shows the daily channel (the black lines). The point where the red and blue lines come together shows a symmetrical triangle. Breakout is more likely to be upward since that continues the trend. The up sloping, blue trend line which intersects with the down sloping, blue trend line could prove a resistance point which might offer another sell opportunity. The pair broke below the blue trend line but RSI has not done so. The last few candles on this chart had lower shadows which could be indicating the pair is rejecting lower price levels. There’s lots of interest on this chart. If I wasn’t short and in profit, I could make a case for going long. 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.

USDCAD—Ain’t Misbehavin’

So far the USDCAD has been behaving exactly as one would expect. It has overcome various resistance levels I’ve written about. Towards the end of last week it dropped back to one of the expected support levels of 1.0682 (actually it overshot it a bit for a low of 1.0656). Then it started up again. Now what?


The weekly chart hints at some impressive resistance. First, the pair is bumping up against a downward sloping trend line. Intersecting that is polarity (a price level that has served as both support and resistance in the past). So 1.08 to 1.10 may be difficult. Expect some chop. You can trade chop but you need to be quick—getting in on pullbacks and getting out at minor resistance or selling at rallies and getting out at minor supports. Given the overall downtrend, it might be safer taking short term sell positions. I expect that both long and short opportunities will present themselves on the shorter time frame charts. Here’s the weekly chart:


On the 3-hour chart you can see the uptrend and it’s possible to see a fairly clear Elliott Wave (EW) count. It’s not absolutely certain wave 3 is over—the pair could be extending within wave three. Fie on the divergence! If wave 3 is ending then wave 4 will be a correction and could provide another buy opportunity at the trend line.

In any case, the little two triangles are my two trades. The more recent one is up 142 pips and the longer term one is up 375 pips. Here is 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.