That being said, the greatest asset for research is hindsight. Remember, in Forex trading, history tends to repeat itself. It is this fact that we will try to exploit in our looks back at Forex trading.
So far, we have focused only on Cable, which is a nickname for the currency pair - British Pound / US Dollar. The symbol for cable is usually represented as GBP/USD.
In our technical analysis, we use time frames ranging from weekly to hourly. This way, we have a good outlook on the trend in the both the long and short term.
Remember, this article was written well before you are actually reading it. Use this information as a tool only. By the time you read this, our support and resistance levels will have changed.
Do not attempt to use this information as trading advice in any way whatsoever.
I look forward to hearing your thoughts and comments.
OK, let's get to the trading.
Cable appears to moving once again. I really feel good to have a daily range well over 100 pips that was not directly driven by news. We fell short of getting in our trades last night, there just was no real bounce before the down move.
The 1.7440 level only really had two reasons to take it, and was only 14 pips away from the close of the previous days trading close. That's just a little too aggressive especially with the volatility starting to increase.
The 1.7440 level is now much more important as we add a last nights high to the growing list of reasons to take it. Cable has turned outlook consolidative first but upside should be limited by 1.744 resistance and bring fall resumption.
We feel the resistance should holds below 1.7420 without news to push it past, and we will expect the price action to resume its downward move towards 1.7048.
Now, go ahead and take a look at what trading activity transpired in the session following when this article was written. Hopefully, it went my way.
Getting the proper forex trading education, to be able to recognize that adjustments should be made, and more importantly understand how to make those adjustments, is the best way to survive and thrive in this or any kind of market. Learn to be an independent trader and control your own future.
The GDP is significant in that it is the broadest measure of economic activity and the primary gauge of an economy's health, but without a major revision to the GDP (it was exactly where it had been predicted 1.7%) It usually does not warrant a significant move.
That is until today, which is why we tell our traders to GET OUT OF THE WAY! Our first resistance level was good for not just one entry but for good on two separate occasions during the night.
On both occasions our first target of 1.7380 would have closed the trade for a 40-pip profit. Had you closed the second trade in which we were looking towards the 1.7320 level as a potential target, around 8:00 you could have easily closed it under 1.7380 for another 40 pips. Enough about last night, where are we tonight and what levels are we looking towards.
First we would like to decide if the up swing will continue or not, and looking at the 1 hour chart we do not believe it will.
We just had a steep angle cross of the MACD to the sell side of the signal line, and the 15 minute MACD continue to be strong on the sell side.
The slow stochastic on the 1 hour chart had a steep angle cross several hour ago and both line are steeply heading down.
We feel the resistance should holds below 1.7480 with a strong region of resistance that starts as low s 1.7468 and goes to about 1.7510.
Now you must use your experience and your education to pick the most advantageous entry and stop loss levels.
If you do not feel your trading is at a high enough level, you should look into getting a better educational foundation to make your trades from.
With the proper education there is no reason you could not be making the kinds of trades we are make, and discussing in our newsletter.
One more thing I would like to point out to our readers, we have had some moderate success in the last month, in the area of 500+ pips depending o your personal trading style.
Please take some time to review what other did as far as results last month, I know for a fact that one managed fund emailed me yesterday with their year to date results in Pips, which was about 250.
Not bad until you look back and see that the year to date on 3/20/06 was a little over 1000 pips and over 1200 the first week in March. So if you were a client of theirs, in the last couple of weeks they would have blown up your account to about 1/5 of its March 1st value.
This kind of makes what we were able to do look pretty good. Get the education you need, learn to be an independent trader and control your own future.