Once again following our rules saved us from taking an ugly loss. I hope most of you headed our warnings and got out of any position prior to the 10:00 AM news. Mr. Bernanke will testify before the Joint Economic Committee of Congress on the U.S. economic outlook, in Washington, and Cable went wild.
Hey that might be a great name for a new web site, "Cable gone wild" a ... never mind. So anyway it's safe to say we have broken out of the range we were stuck in all week. When a significant resistance or support level is broken it is usually done with a big move and today was no exception.
Last night we set our entries at 1.7900, we cancelled our trades at 9:00, we were still 40 pips away from getting in and the news move was setting up to be huge. We made no money today but that's all right, because we lost no money today either.
Given the massive moves in cable there were many traders who lost and we were not one of them. Our favorite rule is, it's more important not to lose money than it is to make money. Our aggressive money management and compounding system allow us the luxury of saying that, and meaning it.
Tonight we are trading around 1.8008. We will be looking to go long for the first time in a while, all of the indicator support further increase.
There will be a region of resistance starting at 1.8113 going to 1.8136. We will look towards a support level below 1.8000 for our entry. We must also keep a watchful eye on the news, the GDP is due out at 8:30 AM EST, and consumer sentiment at 9:45 AM EST.
Remember to play it safe, its better to have a safe entry and not get into your trade than to have an over aggressive entry and get sopped out of your trade for a loss. And it has never been more important than now to watch the news, remember the best way to deal with news is to get out of it's way.
Remember, the best thing you can do for yourself is get a top notch forex trading education. There are several places to find a forex trading course or forex seminar.
We find these support and resistance levels using a set of technical indicators and other variables that we have found to be most successful for us. We use several other indicators and a variety of technical analysis techniques to enter and exit all of our trades. Every trader will have a different combination of indicators that makes the most sense to them. Take the time to learn how to develop your own trading style. Remember a forex trading education, forex trading course, or forex seminar is worth its' weight in gold.
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