Tuesday, May 11, 2010


Yesterday the pair bounced from the 1.4476 low to 1.5055 and fell back to 1.4765 overnight. It now appears to have bounced again and I have two long positions. One is from 1.4774 (stop is now just better than breakeven); the second is from 1.4828 which I just opened. This is a little riskier but it's a smaller position and the stop is not very far away. If it can stay above 1.4720/50, it should have some more bounce in it. A decisive close below that would not be good for this pair. On the three-hour chart below, a doji formed on the most recently closed candle. This is somewhat obscured by my buy (the triangle) but since its low is at support of 1.4721 it's a positive sign.

Support is at 1.4765, 1.4750/20(Fib confluence zone), 1.4650, 1.4598, 1.4476 and 1.4389/67. Resistance is at 1.4854/67, 1.4889, 1.5055, 1.5107, 1.5247/63, and 1.5391.

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.

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