4/24/2008

EUR/USD Trade (#6) Short Update

Update on 4/24/08, 9:59pm CDT: I have canceled my short order. I am just observing for now, but I expect to put another short order in the 1.5800-5850 zone.


Price broke through the diagonal triangle very nicely. Too bad I didn't take advantage of that run. Jaime Saettele said it best in his EUR/USD post today here: "...markets typically do not allow many people in at major turns. In other words, many will wait for a larger correction that never happens." I suppose my best strategy yesterday would have been to short on the trendline break; lesson learned. Either way, I don't think it's smart to chase this move. I can see 5-waves down on the 30m chart, so I am going to wait for a correction to the trendline bottom before attempting another short entry.

I think it's important to note that retail traders finally flipped to net long. Now 54% of traders are long. Man, they are getting in at such a cheap price now!

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