Monday, August 23, 2010


Euro looks like it's beginning another stair step down which it likes to do in downtrends. It's struggling right now to regain the daily 100 SMA at 1.0257 but it's doubtful this will happen unless the low liquidity results in an extreme move.

In the move down it broke the .382 retracement of the up move from 1.1902, broke below its short-term uptrend line from that low, and in general looks as though it's beginning a third wave down (iii circle). Momentum is also sagging. I'm planning on shorting any rally as long as I'm actively trading when it happens.

Here's the daily 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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