A reader emailed me to ask if I was short Cable since I commented in the last post that my money was on the bears. No, I'm not. In fact I'm studying the short-term charts now which look somewhat bullish. It's currently at short-term support of 1.6036.
What I should always remember to say in the weekly analysis is that this is longer term analysis. In the case of Cable, it is near the top of the triangle which would imply a short. Had I been on top of it when it was at 1.6163 overnight, I might have sold there.I wasn't and didn't. At this point, I need to see momentum fail on the short-term chart or a retest of 1.6150 or thereabouts with failing momentum or divergence or bearish candles.
© 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.