The pair broke below .8525 to reach a low of .8501 this morning (so far). My long from .8529 stopped out at -10 pips. Ten pips might seem to some a too tight stop but the pair should have based in here at least according to every approach I use to trading. So I was OK with it. I wrote yesterday that if the pair broke much below .8525/00, " I'll probably stop and reverse, looking for additional moves down." Hovering right at .8501 for now doesn't quite cut it but I'm watching it. This is a serious breach of support (see yesterday's first blog on this pair for why) and if the pair doesn't rally quickly then I'd say the bears have control. I'd then trade according to the confirmed head and shoulders pattern on the daily chart that I wrote about yesterday. Below .8500 support is at .8449, .8403, .8355, and .8300. Potentially one could see a drop back to .8068 and below.
No chart until the pair makes a definitive move.
© 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.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment