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: USD/CAD

Posted 20:28 28 March 2006 | Comments

Since there aren't any news reports I thought I'd look for a resistance play in USD/CAD. I drew the fib extension lines to see where the pair was going and possibly make a reversal. 61% fib line is usually a pretty good reversal point, plus it's right about the R1 line. So I'm going to short at 1.1731, go for 10 pips first, close half of positions, move stop to break even and go for 1.1715. My stop will be at 1.1745.

Or I will go short if the pair breaks below the drawn red line and the pivot point at 1.1685. I will go for 10 pips first, close half of positions, move stop to break even and go for the 200 SMA. Stop at 1.1705