Thursday, August 5, 2010

USDCAD—new low

My short from 1.0239 stopped out at +10 pips. Which is too bad because while price action is overall sluggish, the pair has a new low of 1.0108 which is just below the May 13th low of 1.0110. It has bounced a bit.

We've now had three days with a close below the triangle line. I'd be more impressed with this fact if we were in a normal trading environment, i.e. not the doldrums of August. However it is what it is. In addition, the pair has broken below both price and RSI uptrend line. Yet the pair is oversold and price action is so sluggish that I'm staying out for now. If today's low holds, there will probably be a rally and shorts can be re-established. It's possible we're going into sideways movement.

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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