Tuesday, August 31, 2010

GBPJPY—low of 129.40

The Guppy put in a low at 129.40 and looks as though it's trying to base on the hourly chart. This low is somewhat above the support line at 129.05. I bought a small position at 129.89, in part because of positive divergence on the hourly chart. It's running into resistance in the 130.37/54 area so I moved my stop to breakeven. This is too tight a stop for this pair but given that this could be a short-term correction with the C wave equal to the A wave and that this is a very illiquid market, it makes sense to me. I may stop and reverse. If it can make it through this resistance, additional resistance is at 132.03, 132.75, and 133.77 (daily 50 SMA). Support is at 129.45 and 128.79.

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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