Tuesday, October 26, 2010

EURUSD—15-minute chart

You can see some ominous signs on the shorter-term chart. First, is the slight rounding pattern at the most recent highs (the green line). This often hints at a drying up of demand. Second is that penetration of the .618 retracement of the November to June drop. The attempt to retake it appears to have failed, at least in the short term. Third are the long bearish candles compared to the shorter white candles. The one thing that is positive for the Euro on this chart is the slightly positive divergence.

Here’s the 15-minute 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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