About Pick of the Day

Each day, I will try to find what I believe is the best looking short term trade setup for the upcoming trading day or week. If you're a forex newbie, it can be tricky in the beginning trying to figure out how to look at charts and draw lines. My goal is help you understand the psychology of price movements so you can learn to analyze your own charts and trade on your very own. I will post my ideas and/or reviews through out each session right here, on Twitter and on Facebook.

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March 2006

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Pick of the Day: EUR/JPY

Posted 23:32 27 March 2006 | Comments

This pair continues in a downtrend, so let's see if we can find an entry point. On this chart I've drawn Fibonacci retracement and extensions. As you can see we have some levels lining up with each other along with some of the pivot point levels. Good areas to watch for reversals and/or breakouts. So, I'm looking at two trade setups:

Short at 140.60 if the pair moves up. Set the stop at 140.92. Aggressive target at 140.20.

If the pair moves down past the previous low and the S1 line go short at 139.60. Set stop at 138.90. Aggressive target at 139.40

In either case if the pair hits 10 pips then close half the position, move stop to break even, and then go for the aggressive target. Good luck and good trading!