A Look Back At Forex Trading - 4/10/06

Well, another week of chart watching is coming up. I look forward to nailing these support and resistance levels again.

As I will discuss later, it is important not to be lulled into a state of laziness due to the fact that we are near the same price levels again.

Every night presents new support and resistance indicators. It is important that you take the time to reevaluate your support and resistance levels on a nightly basis.

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 with our Elite Forex Trading Course.
Just keep that in mind for your future trading.

OK, so now to the analysis.

Cable continues to trade in the tight range from 1.7230 up to 1.7600 and back down again. On Thursday night we did not get any bounce up from the open at 1.7523 to get into a trade in a favorable position, so our position was not to take a trade.

Remember not taking a trade is a valid and often very financially sound position. We expect cable to continue in a slow downward track, to around 1.7250, where for the past several times it has had a very strong rebound back to the 1.7600 level.

Tonight we are hovering around 1.7440. There is a resistance range with many solid levels, including several Fibonacci lines and previous swing highs around the 1.7470 level.

This range goes all the way to 1.7500. This is where will find entry and stop loss points. As far as support for our potential profit target we will be following what happens to price action around the 1.7380 range.

If this looks familiar it should, this is the third time in as many weeks that we have been looking at these exact same levels. The one thing we have discussed with most of our traders, is that you must not let the familiarity of the levels allow you to get lazy and not do your homework finding your levels, and if you think you could be a little better at finding your entry, stop and profit target levels, but you are not sure how. Remember, it is important that you help yourself by getting a top notched Forex trading education.

About The Author-- Learn about any of Eddie's amazing trading tools:
Forex Seminar | Forex Trading Course | Forex Trading Education

Article Source: Articles island - Free article submission and free reprint articles