USDCAD has dropped below 1.0498 to a low, so far, of 1.0466. My long stopped out for -30 pips.
The head and shoulders pattern was confirmed at 1.0498 and the price target is 1.0424 (high of head at 1.0572 minus neck at 1.0498 = 74 pips. This 74 is subtracted from the neck for 1.0424 as the target). If it was a diamond pattern, the target is 1.0454 (height of diamond at tallest part subtracted from break out point). Since 1.0423 was support anyway, I'd expect it to hold if it gets near there.
© 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