A Look Back At Forex Trading - 3/24/06

By: eddie0816
Due to the overwhelming success of my last look back at Forex trading, I am releasing another. There will be a new released every day, except weekends, so you could continue to look back at how we find great trading levels.

We are firmly in a downtrend from 1.7593, and longer term from 1.7933. We have been breaking through support all week, and until we get signs or indications otherwise, the market should continue it's downward move.

The next area of support is minor around the 1.7280 swing low, followed by the cluster around 1.7230 and more around 1.7147 heading down towards a complete retracements of the 1.7048 to 1.7933 move @ 1.7048.

This current move could certainly continue even beyond the 1.7048 level and become a continuation of the overall down trend from 1.9549. We have further confirmation via Technical indicators.

The Daily MACD has joined the 4-hour MACD in crossing to the sell side of the signal line, with what appears to be a significant crossing angle.

Our resistance levels were just a little off last night, which is not to say they were bad, but we have gotten spoiled, hitting our entry levels every night this week within a couple of pips.

The first area of resistance, most of our traders would use for a possible entry, was around 1.7460 last night. The market went as high as 1.7449. When you look at the fact that a majority of our traders use about a 10 pip cushion, we were right there.

We are currently trading around the 1.7345 level. It appears the down move is fully in place, and should continue towards the previous lows at 1.7280.

If this should not hold, and we have no indication it should, we would be looking towards the next cluster of resistance at 1.7230 and 1.7048.

If a bounce back up should occur, it would be testing the resistance cluster around 1.7600.

This is a very tough market to make money in. The volatility dries up and the daily range gets tight. Even with these conditions if you, if you adhere to your risk vs. reward and money management rules, and you follow what he charts are telling you as far as trend direction and support and resistance, you can be very successful.

Once you become comfortable with a set of indicators, technical or fundamental that you use. Analyzing charts to find good support and resistance levels could take less than 30 minutes per day.

The best way to gain the knowledge you need to find these levels, and profit from them is with a Forex trading education. Whether it be an elite Forex trading course or a Forex seminar, it is important that you find something that works for you.
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