Trading in Black and White Forex Trading Newsletter - 05/22/2006

Trading in Black and White Forex Trading Newsletter - 05/22/2006

Let's start this week by looking at the end of last week. We mentioned that we are very cautious on Friday. We usually do not trade or trade less, on Friday.

For some reason, we have not had much luck with trading Friday. Levels that hold as support or resistance for a week long break like dust in the wind Friday.

So, that being said, it happened again. We used 1.8760 as support several times last week, but had no faith in it for trading on Friday. Fortunately for us, we stayed true to our guns and stayed out of the market.

As we saw, the 1.8760 was broken like a wet tissue. We see no reason for it, but the reasons seem to matter less in Friday's from all other days of the week. Maybe it's mad dash of traders trying to make those extra few bucks before the weekend or near their positions. Who knows?

Well, the last note on Friday. There were several key support levels / indicators to see which were suspended on Friday. It gives us good reason to look for short today.

So now to today's trading. Although some of our merchants do not agree with us, we will look only to play the short side of the cable today.

Our aggressive traders argue that 1.8700 is a good support level, and have taken long positions out there hoping to climb. Hey, to each his own.

We, in turn, reflected in high levels of resistance 1.8700 is all the way to 1.8800. There are multiple levels of resistance at 1.8820, 1.8850, and then as high as 1.8890 to 1.8900.

It's actually pretty slim booty when it comes to finding a good stop price, so be careful.

This is another great time to mention that no trade is better than a bad trade. A bad trade is that when you do not have all the important information. Make sure you have all levels is necessary for a good trade - entry, guests, and profit target.

We believe that these support and resistance levels using a set of technical indicators and other variables that were found to be very successful for us. We use several other indicators and a variety of technical analysis techniques to enter and exit all of our trades. Each merchant will have a different combination of indicators that makes the most sense for them. Learn how to develop your own successful Forex Trading style with our Elite Forex Trading Course or Forex Seminar.