USD / CAD - Covering Position
By Eliseo Agas | October 18, 2007
As of this morning I don’t like what I’m seeing on the charts for the short idea. Although nothing definitive has come up saying that the downside potential is gone, it’s showing a momentary sign of weakness…for me that’s enough since I wasn’t looking to hold the position for more than 2-days. What I was ideally looking for was momentum to come in slamming USDCAD downward for a day or two. I’d rather get out than risk a complete reversal to the upside in my face.
At best, if the downtrend remains intact it will allow me to get back short at possibly better prices. Right now, I was able to exit gracefully with a very negligible hit to the account. Now I’m ready for the next trade.
Tags: cad, forex charts, forex trading, USD
Topics: Better Use Charts - Use Charts Better | No Comments »
USD / CAD - Probe for Weakness
By Eliseo Agas | October 17, 2007
Following up on my previous post, I think it would be a decent time to throw in a probing trade into USDCAD at this point (at the time of this posting).
A probing trade is a very small position that by itself is relatively inconsequential if it wins or losses. But the great thing about a probing trade is that it gives you a better feel for what the market is doing because you have money on the line. Additionally, once we get confirmation that sellers are stepping back in we can build into this making it a bigger position with only a slightly worse average cost for the overall position.
I’d be comfortable adding to this position on a break below the .9743 level.
Let’s sit back and see what happens next.
Tags: cad, currency trading, forex charts, USD
Topics: Better Use Charts - Use Charts Better | 1 Comment »
GBPUSD Trading Range
By Laetitia Vaval | October 16, 2007
The GPBUSD pair has been trading in a range (2.0250-2.0450) since the end of September. I’ve decided to try to profit from this trading pattern. I bought one lot at 2.0300. My upside is 150 pips (limit set at 2.0440). I set my limit price at 2.0230, 70 pips below since that is under the trading range and if the GBP reached that level it would probably mean that the range has been broken and that my earlier ”analysis” is no longer valid.
Tags: gbp, pips, trading, USD
Topics: Wall Street Warrior | No Comments »
USD / CAD - Are You a Believer?
By Eliseo Agas | October 16, 2007
Sorry, for my unscheduled hiatus from the usual posting…fear not, trading has been tremendous the past few weeks so life is good. I hope you’ve all fared just as well if not better. With that said, let’s talk shop…
Now if you believe the USD/CAD free fall from parity the past month is bound to continue then here is how I would play that angle:
As of this writing, we have a bounce on the Daily chart that sets us up for a potential entry to short. I’d now begin searching for any signs of weakness on a smaller timeframe (my favorite, 4-hour chart) indicating when sellers might be stepping back in. The danger with any trade like this is to be aware when sellers start running for the exits en masse…this is something we’d have to keep an eye out for on the Daily and use Stops based on key levels on the chart indicating when sellers may have lost faith shorting.
Right now, I’d sit patiently on the sideline waiting for signs of the bears beginning their assault on the bulls before putting my position on. I’ll post to follow up on this idea as it develops.
Tags: CAD, forex charts, trading, USD
Topics: Better Use Charts - Use Charts Better | 1 Comment »