Thursday, February 24, 2011

AUDUSD—working out divergence

On the hourly chart, one can see a completed AB=CD pattern with a pullback to about the .618 of the A to D range. This comes after a positive divergence between price and RSI so I'd expect at least a slight rally. Price has overtaken the short-term resistance line and recent high of 1.0083. I went long at 1.0068 but don't have a lot of faith in it and have moved my stop to breakeven. We'll have to see how far it goes. Next resistance is 1.0137/58, then 1.0200.

Here's the hourly chart:

© Dianne Fecteau, 2011. 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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