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Saturday, March 19, 2011

Trend for 19th of March 2011


Although Friday did not see strong trend in any of the major currency pairs, there were some moves which you could have traded and made some profit. One nice move was in gbp/usd pair and it could have been predicted very easily. Gbp/usd formed 4 resistance points around 1.6190 level and 3 support points around 1.5975 level. This was a pretty tight range and what you could have done was simply place a sell stop order below the support level and buy stop order above the resistance level. You would have then simply gone with the trend when resistance was broken. 

In these kind of situations I sometimes like placing a few orders and when there is a breakout in the market. I try to remove one of the orders as soon as I see some profit. Then I let the other pair run till the move is exhausted. I do not like leaving any orders for weekends as very often markets open with gaps on Sundays and your profitable position can drift to a loss zone very fast. And you can never know what might happen during the weekend! What if there is some sort of disaster? The markets can move 500 pips right after the opening and your stop loss orders may not be filled. So, be careful when you trade Fridays. 
 Read my previous posts:


Trend

gbp/jpy trend 


Disclaimer

Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.