Most of the reason I bought is because it had come up to a resistance point with a strong candle and it was the 4th attempt at resistance. In addition, the pound has taken a beating lately and I thought a rally was in the cards. Finally, there was positive divergence on the three-hour chart that looked ready to work its way out.
I doubt this pair can get much past 1.6222/52 which is a fib retracement and price resistance. Before it does that it needs to clear 1.6131, the downtrend line coming in. It might be worth adding to the position if there's a pullback but if it seriously starts to falter, a reverse might also be in the cards.
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.
No comments:
Post a Comment