Wednesday, August 25, 2010


I'm still long from 1.0472.

The pair is managing to stay above the triangle and above the 10, 20, 50, 100 and 200 day moving averages but it's still having a hard time. So far it has touched 1.0668, a measly four pips above yesterday's high of 1.0664. Fib confluence is still beckoning as support at 1.0586. Also around there is the short-term uptrend line from yesterday on the hourly chart. Finally there was a shooting star candle at the top and with negative divergence on the hourly chart, we may see a drop to at least the 1.0586 area.
Below that would be yesterday's and today's lows of 1.0557/74 and below that the breakout point of 1.0480. All five of the previously mentioned moving averages are clustered between 1.0345 and 1.0452 so there's a support zone lined up. Resistance is at 1.0668, 1.0700 and 1.0856.

Here's the one-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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