Random Acts of Forex: Can you guess what this is?

Tuesday, September 25, 2007

What chart is this? How would you play it? What does it mean in the short term? What does it mean in the long term?

Jerry said...: Blake, I believe the chart is USD/CAD.

You've drawn a downtrending fib fan, along with horizontal support, and an upward-trending channel. There is vertical trendline as well but it's not necessarily in play for this analysis.

The trade I'd take is aggressive, buying at the current level, expecting a breakout of the upper fib fan line.

I'd apply a tight stop just below the horizontal support.

Jerry Steffler; 2:15 PM, September 25, 2007
Blake Young said...: Where would you put your stop? You would already have clipped a few bucks out of the trade at this point.; 2:41 PM, September 25, 2007
Jerry said...: I'm sorry I was unable to do a more careful analysis of the trade earlier; I had to get back to work.

I looked at the ATR for the last five days and gave it an avg of 30 pips. I doubled that and would've placed the stop 60 pips below where I think you drew your horiz. support, which I called at 1.0006.

So the stop would be placed at 0.9960.; 6:24 PM, September 25, 2007

Random Acts of Forex