Thursday, October 7, 2010

EURJPY—moving down

I blogged last week that this pair was a potential sell and on Friday wrote that, "With a touch of 1.1452 this morning, the pair is getting very near to the potential selling price of 114.74 I've been blogging about this week….115.14 is the upper channel line and there is fib confluence and polarity at 116.63. So if price gets through the 114.74 then it might be worth holding off a bit."

On Tuesday I shorted at 115.30 with a very tight stop and it has finally started to move down, hitting a low of 114.60 this morning. However now there's a need for caution because it could only be retesting it's former resistance of 114.74—overshooting a bit is common in the Forex spot market. I've moved my stop to breakeven so I have no risk but I'm not going to take partial profits at this point. If it heads up again I may do so but in my mind the potential is so great that I want to leave it alone. That potential is 1.0986 (50% of the most recent move up). Support is at 1.1454, 1.1376, and 1.1298. If the pair rallies well I will probably go long around 1.1530.

© 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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