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: NZD/USD

Posted 20:13 21 March 2006 | Comments

This pair has been in a serious downtrend. Let's see if we can partake in the pip party! By the arrow I have drawn you can see that the 0.750 fib extension level and the S1 line are lining up nicely. Also, it's right at the 0.6200 price level. Price levels ending in double zeros are very import because a lot of institutions and traders set buy/sell orders at those prices.

So, with a candle close 10 pips or more below 0.6200 I would go short on NZDUSD. Please set initial stop at 0.6250. First target the S2 line at .6175 line, move stop to break even(take half the position off if you are using multiple lots), and go for the 1.000 fib extension level. Remember to move your stop when the pair breaks through the various support levels on the chart. Good luck and good trading!