Trading in Black and White Forex Trading Newsletter - 05/18/2006

Trading in Black and White Forex Trading Newsletter - 05/18/2006

Wow, another great day of trading, and we missed 90% of it. We took our short at 1.9000, which called yesterday, and closed it for 40 pip profit right before the release of news 7:30 EST.

From that point, we waited and watched. We do not go short for the second time you hit 1.9000, unfortunately, but many of our aggressive traders Sun They play very often "about the reaction strategy" what happens when a news release.

Now, here is the part that kind of sucks ... we do not trade the whole way down to 1.8800. It is 200 pips that we had to wait through to reach our support at the level of interest.

We had a chance to go long at 1.8820, but we sat outside, because the news had just come out and want to wait a bit before jumping on his back in a statement.

There was another chance to get long around 1.8800 again later, but usually not in front of the screen in the afternoon. However, I do not think we'll take that trade anyway. I would guess that it would have. This makes me feel better about missing that kind of move ... ha ha.

So, let's get to trading tonight.

We must recognize that we are very confused. With recent activity, nice resistance level at 1.8900 formed. That is what we will watch very closely.

One is the fear that it will be difficult to find a level above the stop there to protect our trade. There really does seem to be something all the way to 1.9000.

On the other hand, we are going to abandon our support level of 1.8700 mid 's. So far, that level has held very well and hopefully we'll have a chance to get out there again and catch another big trade.

The very important note! While not really focusing on fundamental analysis, we try to be aware of potential risks due to volatility because of the news. Tomorrow is loaded with news. Starting at 07:30 EST and go right through to 10:45 EST.

Now, not all news is the same, but no longer exist within a few hours span more important they become. People are reacting to the regime of the news and then react over even the smallest piece of news.

That being said, we will be ultra conservative tonight. Also, we will close our trades before 07:30 EST news release.

Last, we will not put in the trade again until after 11:00 EST. At that point we will reevaluate the charts of the cable and find new trading levels (they might actually be the same ones that talked about in this newsletter).

The truth is, we had a great week of trading. We made 360 ​​Pips, which far exceed our goals a week, and we expect to give any of it back.

This also gets factored into our conservatism of tomorrow.

We believe that these support and resistance levels using a set of technical indicators and other variables that were found to be very successful for us. We use several other indicators and a variety of technical analysis techniques to enter and exit all of our trades. Each merchant will have a different combination of indicators that makes the most sense for them. Learn how to develop your own successful Forex Trading style with our Elite Forex Trading Course or Forex Seminar.