Sophia Todorova is the host of the live trading room for the London session. She has a background in teaching and psychology, and as such relishes the idea of assisting new traders on their journey to Forex trading success. Technical Analysis is her passion. The charts speak, and she listens. To Trade Live with Sophia Join Winners Edge Trading Premium Services.
There is a trading opportunity that I am watching on gbpnzd. If the trade setup plays out the way I am anticipating, then we will be looking at a potential 100-pip profit target. In relation to the daily timeframe below, you will see that today’s candle appears to be testing the resistance level market by the red horizontal line. We know that once a resistance area gets broken, it usually turns into support.
I will be using a 15-minute chart for entry on a buy. This chart shows price holding above its up trendline, which is currently being tested. I am watching for a bounce to go long around these levels. However, from the chart below, pay attention to the resistance area, ( 2.1975) around which the red horizontal line is drawn in. I need to see a solid close above this resistance to confirm entry. Assuming this does take place, I will buy there and look to target 2.2080 for profit-taking. There is significant weekly resistance above this level. As usual, I will be scaling out of my position in thirds.
If you are interested in trading this with me, it is a good idea to follow me on twitter, since I am able to give quick updates there, and you will be able to get them instantly.
When trading always use a stop loss and calculate the proper risk management for your account. This analysis aims at providing assistance to the forex trading community here at Winners Edge Trading, thereby helping them to make informed trading decisions.
Thank you, and be sure to view my last post here. Target got hit: http://www.winnersedgetrading.com/is-the-forex-dream-a-lie/
Other useful blogs:
Forex Crunch: Forex Daily Outlook- July 5 2010
The GeekKnows- Daily commentary on eurusd
One other free trading tool I recommend is Currensee . It can be a useful tool to be able to see how other professional traders are doing.
