Monday, February 22, 2010

EURUSD—15-minute chart

Euro has basically thrashed around this morning. On the 5- and 15-minute chart, the pair was coiling inside a symmetrical triangle and has broken downward but was stopped by an uptrend line from this past Friday. This triangle formed coming out of a broadening formation, visible on the one-hour and 15-minute chart. It's possible these are only short-term bearish signals—one would still hope for a rally—but I've been shorting tiny rallies this morning, the last short being from 1.3594 which is still on. A definitive break of the uptrend line would target 1.3560 and then 1.3533 in the short-term. A break upward would bring back the idea that the pair was ready for a rally.

Here's the 15-minute 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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