Saturday, August 06, 2005

Weekend Analysis

Hello everyone! As if I hadn't had enough forex already, I am here with a weekend chart analysis :) If you can't tell by now, I love the forex! Even when I lose, for some reason, I just can't get enough. Each loss I take, I feel like I learn a new lesson, and that gives me great confidence. The more confidence I gain, the more comfortable I get when I trade. I hope you all enjoy this market as much as I do. Now let's get to the chart:

Below is a 60 minute chart that contains all the trend channels from the weekly, daily, and 60 minutes. I re-drew my trend lines because as you all know, the Euro broke through both sides this week. A key level I would watch out for is 2300. 2300 looks like it could be a nasty support area, so if a breakout below occurs, I think we could see a nice move down. For long positions, I'd look for a breakout above the upper trendline of the daily downward channel. This number will change as the price moves along, but if a breakout occurs, I would expect it to go to at least 2400.

The reason I like to do a weekend analysis is because it gives me a "bigger picture". I can review last weeks action and I can also make reasonable guesses as to where the action could be headed. I always leave this chart up on the side when I trade, just to see where I'm at. I encourage you all to do the same. It can be a lifesaver! Well, that's it for now. Have a great weekend everyone!

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