The reason I'm showing this chart is not because I'm trading it but rather because it shows how even after spinning tops and upper shadows on candles, a pair can still move higher. Which is what happened. Now it's true it's approaching the high of the upper shadow on last week's candle, .8842. What happens here will be significant for the pair and may signal that the advance has gone a bit too far. It's even possible the pair will drop back to .8715, .8600 or its break of key resistance at .8531. At that point it would certainly be an attractive candidate for going long, depending on what else is going on. However, if it overcomes the high of .8842 (a close above it), then .8888 is confluence on the daily chart and .9000 is a big psychological number.
Here's the weekly 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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