Friday, January 15, 2010

EURCHF—near trend line

As I wrote Tuesday, I’m still short from 1.4928. My stop is 110 pips above breakeven. The pair is beginning to hesitate and it’s doing so near a trend line from October 2008. Its low was 1.4731 a few days ago. The daily candles have upper shadows as they’ve had all the way down this slippery slope so further lows may be in store. A definitive break of the trend line would probably encourage me to add to my position. There’s more support at 1.4695 and 1.4580. Here’s the daily chart:

© Dianne Fecteau, 2010. 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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