Tuesday, March 24, 2009

Day Trading Rules - No Setup No Trade

As mentioned in yesterday's post Inside Day for Three Major Currency Pairs, euro is in a top building phase. It's a very tough switch from a trend mode to a swing mode. There were three false breakdowns from the top range. At the beginning of US session, euro formed three pin bars which indicated indecision. At 1:00pm, euro closed under the lower bound of the top range. Although we were anticipating a top breakout for trend following, we need to respect what the market is telling us now. There is no long signal yet. Patience is a virtue here. 3415 gonna be a key support level.

Pound did breakout and formed a higher top range. That's the kind of price action we would like to see in an uptrend. Pound made a 2nd new high of 20 trading days (H20).

Yen kept moving up and almost retraced last week's slide. Whether this up thrust will challenge the key 100 level, only the market can tell us.


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