Monday, October 25, 2010

GBPJPY—New low

The Guppie has dipped below the May 20th low of 126.73 to 126.46 so far today. This pair’s average trading range (ATR) recently has been 132 pips. It has already had that move today so I wouldn’t expect more downward moves today. I suspect more lows ahead but would like to see a rally before shorting at this point. 127.22, the lower channel line, or 127.89, recent highs, are both possibilities. Shorting at that level would still require a tight stop as there is also the potential for a rally to the 130 area. At that point, I'd expect sellers to crush it.

© 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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