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/JPY

Posted 20:39 02 March 2006 | Comments

On this chart I see a strong move to the downside, so I drew a fib retracement line to see where the pair may possibly go. As you can see the 50 SMA, Pivot point, and 38% fib line are all lining up perfectly indicating a very strong resistance point. I will enter short here at 116.00 and go for 10 pips. For you aggressive traders you can target the previous low of 115.76 for a bigger profit potential. My stop will be above the R1 line at 116.27.