Forex Trading Strategies 13

Currency Trading Strategy Number 68:
I get the impression that some of you are not paying enough
attention to trendlines. They are very powerful. Price WILL change
direction when it breaks the trend, regardless of what other
indicators may be telling you. So, draw them, and let them be your
guide. REMINDER: In an uptrend, as we saw June 25/03, as long as
the trendline holds, buy the dips. In a downtrend, sell the rallies. In
an uptrend, don't look to go short EVER! In a downtrend, don't look
to go long EVER! Plain and simple.

Currency Trading Strategy Number 69:
Thanks to Stu G. for this one. I have been harping on using MACD
only for divergence. But, Stu is right. I do on occasion, as I did June
26th/03, use MACD to confirm the trend. If the price trend has been
consistently down over a period of time, then it could very well be
that when price tries to go counter-trend, it may just be a
retracement or a temporary move in the opposite direction. I usually
like to stick with the major trend. In a downtrend, sell the rallies; in
an uptrend, buy the dips.

Currency Trading Strategy Number 70:
I was asked by some of my readership what happened Friday, June
27, with all the wide-range bars on the 15-min chart. That was a
tough day to trade, even for seasoned professionals. Lots of whipsawing.
Lots of stops got taken out. Trading patterns were
dominated by end-of-quarter positioning. A good day to stand clear.
So, be prepared for the next end-of-quarter, and the one after that,
and the one after that, etc. Mark those dates on your calendar.
Trading is as much about being organized and prepared, as it is
about being good at it.

Currency Trading Strategy Number 71:
Marathon runners have only one thing on their mind when they are
running – to cross the finish line. They NEVER look back. Same too
with trading. You should focus on surviving for the long haul. Sure,
you will stumble and fall. But, just pick yourself up, just yourself off,
and carry on. Winners never quit, and quitters never win.

Currency Trading Strategy Number 72:
Beware of holiday situations like the long July 4th weekend. Trading
tends to be thin, and it is difficult to produce meaningful pivot points.
Best to just go golfing, and forget about it. There's nothing that says
you have to trade every day. Get a life.

Currency Trading Strategy Number 73:
If you are having trouble with your entry points, I suggest you try
waiting until you see a hammer or a spinning top, and then pull the
trigger. You may wait a long time, but at least you will be sure of
getting a good entry point, as these particular candles are powerful
precursors to a shift in price direction. Have a look at any chart and
see how many of these candlesticks you can pick out. You might be
surprised at how many there are. For more information on these bar
formations, please read my August, 2003 edition of my newsletter:
www.tradingsmarts.com/newsletter0803.htm Obviously, if you click
on that link after August 1, 2003 the newsletter will be there. Before
then, it won't.