Trade of the Day
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Trade of the Day
Mon, Nov 16 2009, 23:27 GMT
by Casey Stubbs
Winners Edge Trading | View company's profile
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The head and shoulders pattern I wrote about never materialized. This currency is in a range because the market can't decide what to do next.
How long does it take to for a currency to be considered in a range? I don't know but I know that the Eur/Usd is in a range now. The was in an upward moving trend that has slowed down to be in a trading range. The pair crossed the 1.4626 level on October 4th and from there the price moved up to 1.5062. The pair has been in between those two points since Oct 4th.
So now that the trend trading is over with it must be up to range trading to find entries on this pair.
4 hr chart
A good way to find entries is to look at support and resistance levels and put trades in on the bounce off of those levels. A confirming candle formation is also important when entering a trade, don't just enter as soon as the bounce happens but instead wait for the candle formation to give confirmation. If you need some help with candle formations check this helpful explaination.
The support and resistance levels to watch are marked on the chart with think blue lines. The 1.5062 area is important right now as well as the 1.4823 level. If those areas get broken begin to look for the pair to start trending again.
Published on
Mon, Nov 16 2009, 23:28 GMT
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Legal disclaimer and risk disclosure
Trading forex on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
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Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
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