Monday, September 18, 2006
Learn Online Forex Trading - My trade on GBP/USD..is it right?
Learn Online Forex Trading - My trade on GBP/USD..Is it correct?
GBP/USD is one of the very volatile online forex trading trading pairs and eventually with a good momentum. It is the most traded currency pair and moves the most on a trading day.
The GBP made a double top on 3-Sep-06 in a daily chart and since then start retracing.
Now, lets look at the 1 hour chart and see the conditions -
1. The currency pair made a double top on 3-Sep-06 at 1.9100 as mentioned by blue circle.
2. The pair then retraced to 1.8600 till 10-Sep-06.
3. There on it started moving up and hit the 61.8 Fib level of 1.9100-1.8600 rally at 1.8900.
4. It started retracing and crossed below the 200 EMA (Red color line).
5. I placed the online forex trade at 1.8763 at the place marked in blue circle as the MACD were also pointing down and RSI was also below 50.
6. I placed the stop at 1.8837 above the recent top.
However, as you can my trade is very near to being stopped out. I am not sure what was incorrect with my trade.
Can you please give me your comments on the mistake I would have made in this online forex trading??
