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Trade of the Day

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Trade of the Day

Sat, Nov 7 2009, 19:46 GMT
by Casey Stubbs

Winners Edge Trading

I did an article on Thursday about a 4HR Triangle setup. I am wondering if any one else attempted this method along with me.  After I posted the article on Thursday the Eur/Usd did not move more than 5 pips for about 12 hours because traders were waiting for the Non-Farm Payrolls report to come out. When the report came out the price dropped out of the triangle and I entered short at about 1.4875 and the price went straight down to 1.4814 which is a total of 61 pips. I actually had a profit target set in place of 55 pips so I almost got the whole trade.


Now It usually doesn't work that well but sometimes it does. Next time I see a triangle forming I will try to post it here so we can see if we can repeat the process.


Now for the next opportunity :)  The great thing about Forex trading is there is always another opportunity just around the corner.

Since we have been getting mixed news on the economy the pair has not been trending recently which makes trading a little more difficult.  Since the market has not made up its mind which way to go the news will be more critical this week to keep up with because we are looking for clues on the economy that will give the Eur/Usd direction. 

The pair has been in a channel between 1.4900 and 1.4800 for the last 3 days. I have shown this on the chart by putting two thick blue support and resistance lines.




The actual numbers are resistance at 1.4918 which was tested 3 times and a support of 1.4814 which was tested 3 times also. 

Keep an eye on the news and those levels if we get positive news on the U.S. recovery and the price moves above the 1.4900 resistance area then that is probably a good time to enter long. If the news is negative and the price moves below 1.4800 then that is when I will be entering short.  If there is strong news or mixed news then I will just trade technical data only and follow the support and resistance areas.

Published on  Sat, Nov 7 2009, 19:51 GMT