Saturday, September 15, 2012

Forex...a new beginning


Let's start with Euro/USD, reviewing price action. We look at the weekly chart that starts on August 11th ending at September 15th, a period of one month. We compare this one month to a daily chart starting at September 7th also ending on September 15th. Both time periods are in an uptrend. We bet this currency pair will continue the uptrend on the daily chart. We hope to place an order for 1 lot at 1.3170 with a stop order and a take profit order at 1.3270, a 100 pip gain. We'd like to have a risk reward ratio of at least two to one so we will risk losing 50 pips to gain 100 pips. Our stop loss order will be at 1.3120.