AUDUSD—in channel

This pair is edging up and I'm hoping it reaches .9038/65 where I'll try a small short. This is the top of an up-sloping channel and is also where the .618 retracement comes in from the move down from .9330. I've entered a sell order there. Usually, I don't do this. One of Gann's 28 trading rules was "Never limit your orders. Trade at the market." It's a good rule because it keeps you focused on the market's moves and psychology. While I'll watch for that level, I want the trade if the market only briefly touches it. The other thing about that level is the nice tight stop I'll be able to have.

Support:

.8890
.8814/48
.8785
.8618
.8578

Resistance:

.9000
.9038/65
.9093
.9142


Here's the three-hour 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.