Monday, March 1, 2010

GBPJPY—sell rallies

I mentioned Friday that I was short GBPJPY. I entered at 1.3603 and as of now, 8AM, EST, the pair is over 300 pips in profit. I took partial profits at +300 pips.

When I started shorting this pair early in February, I noted that the confirmed double top from June and August of last year had a projected price target of 1.3045. It's not that far away. There may, though, be some rallying from this point as the pair fell pretty hard this morning to a low of 1.3203 before bouncing up to its current 133.12. There's positive divergence on the hourly chart:

Support is at 1.3203, 1.3147, and 1.2963. Resistance is at 1.3382/90 1.3414, and 1.3551. It's worth shorting on rallies and I have a sell order in place.

Here's the hourly 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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