A Look Back At Forex Trading - 4/04/06

Last night is what we call a good no trade night. Remember taking no trade is taking a position, and often the safest position. We had several good reasons to take a short position around 1.7360.

Unfortunately the market just dropped, all night, never taking the bounce up we look for our entry. In the morning in was obvious Cable was not going to give us our trade, we had news coming out ( ISM) at 10:00 AM, it was time to get out of the way, and in doing so we prevent a loss of from 30 to 40 Pips.

The ISM news produced a 130 pip spike. Today we have several of the Fed presidents speaking, although none of them appear significant, you need to watch any trades you might be in

Tonight we are trading around 1.7380, our first region of resistance is in the 1,7420 range, and a second region around 1.7450. The strong support From 1.7310 to 1.7280 levels was violated firmly last night. For the next support level we will look around 1.7230.

For those of you who are fans of the candlestick patterns, we had a perfect double bottom form on both the 4 hour and the 1 hour charts yesterday, right before the spike up, I hope you saw it and were able to get in a long position.

Anywhere from 100 to 150 pips could have been had on the move. The double bottom formed in the first couple of hour of the London market, those of you who actively trade the London market were the beneficiary's of a classic pattern that worked to perfection.

I on the other hand missed this as I was studying the backs of my eye lids and not the charts at 3:00 AM EST. That is the beauty of how we teach forex trading in our forex-trading course.

There are a limitless number of ways you can choose to trade the forex, and you develop the style of trading that is right for you.

We find these support and resistance levels using a set of technical indicators and other variables that we have found to be most successful for us. We use several other indicators and a variety of technical analysis techniques to enter and exit all of our trades. Every trader will have a different combination of indicators that makes the most sense to them. Learn how to develop your own successful Forex Trading style by getting a Forex trading education. Whether it's a Forex trading course or a Forex seminar.

Article Source: http://www.majorarticle.com

Eddie has been training traders for over a decade. Learn to be an independent trader using his proven methods. Read morea at www.elite-forex-trading.com

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