Wednesday, November 10, 2010


My long at 1.0089 stopped at +10 as AUDUSD corrects. Price has broken below 1.0003 the old high that might have served as support and have touched a low of .9982 today. This doesn't mean catastrophe for this pair is at hand—it could find support at .9972 which would be .618 if the A wave if one assumes this is an ABC correction that began Oct. 15th. Equality would take it to a low of .9841 and 1.618 that of A would be .9630. The .9630 looks attractive since it's near .382 of the move from .8770 to 1.0183 and the 10/27 low.

If the pair can quickly regain 1.0003 (not just a touch and retreat), then I'll buy; otherwise I'm looking for a short entry.

Here's the three-hour chart on which things look a bit dicey:

© 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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