Thursday, March 24, 2011

GBPUSD—Hourly divergence

On the hourly chart (not shown), there is positive divergence between price and RSI. In addition, the last closed hourly candle was a hammer. Both of those hint at a rally. Resistance is at 1.6197, 1.6235 (.382 retracement of the move down from yesterday), and 1.6267 (price high and 50% retracement). The hammer low was 1.6136. If Cable closes below that, it invalidates the hammer. At that point, I'd look for 1.6000.

© 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.

No comments:

Post a Comment