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Well the EUR/USD prediction was correct, and some may choose to take profit right about now, and re-enter on a possible retrace. [that you can see in more detail on the hourly] Or you could play it out, but depends on the strength of your psychology. If you do play it out, the stop loss should be moved tight, anyway. Remember- if you make ~2-3% let's say, that is *Darn good*. Don't go for a home run.

P.S. My best advice regarding trading psych - take a break after a good run i.e. If you did short the EUR/USD and made some money... don't trade for a short while, specially if you are feeling happy!! Reason? When you are feeling happy, there may be over-confidence... and you may also lessen the value of your earnings. You may think that is "play money" now [let's say you made 5%, you may think you can risk that 5%]. You may then take a trade, get all stressed out from a loss and try to recoup that 5% again... make bad trades. Point being- if you are feeling any type of emotion, good or bad... stop and take the day off. Plenty of opportunities coming.

So, continuing onto the trading observations... generally, trading the daily is the best, because longer timeframes are better for trading psychology IMHO. [other reasons exist, but my experience shows this is the main reason. When you are trading the daily, naturally you are in it for longer than a couple of hours, and aren't frantically looking at the charts, stressing, making bad decisions] Trading psychology is a separate topic- i have lots of experience there Anyhow, here is a short based on trendline, fibonacci as well as price action You will notice that the moves up continue to be rejected, and then the price actually breaks below the previous low. This is where a sell, with a SL at the top of the previous 3 days, and taking half your profit at a reasonable point and letting the rest ride would be a good idea. Notice also the fundamentals of the euro and the overall trend is downwards. It is generally recommended you don't trade against the trend! And if you do, be cautious. At the current price point, it may range slightly and continue going down. It may be recommended to take some profits, move the SL and re-enter if it retraces. In fact, when you are going with the trend, you can take your profits, then wait for a retrace, then buy/sell again to go with the trend.

Tradewinds - thx for the Q. I am looking at the hourly, where the previous resistance line turns into the new support line. Note there is also a support line that intersects there, making it stronger. Point is that generally basic support, resistance, trend lines along with price action is a good starting point for understanding what is going on. Too often, novices tack on a gazillion indicators without understanding the basics of price action. Lines & PA should support one another. i.e. One may be tempted to buy when the price gets back to 1.3550 for the second time, but there is no suitable price action to make such a move on. Similar to a game of poker, one should set very conservative rules and when those are met, put in a proper trade. [Entry & SL etc. I will get into soon - that is most challenging] One note of caution - trading ranging pairs is a bit more challenging than trading trending pairs... particularly on a short timeframe such as the Hourly.

On the hourly, again, there was a consolidation at support, where buying EUR/USD [upon breaking 1.3575] would have made some monies. If you combine this with the daily, as well, selling off at the resistance line is a good idea. If the EUR/USD is going to be trending downwards on the daily, that would be a good entry point. Often times, simple PA along with understanding ranging vs. trending can be the most profitable strategy. But you have to remain disciplined, setting stop losses properly, entries properly, and knowing when to take out a chunk of your profits!

I just wanted to share some basic trading analysis here: The EURO was fundamentally weakening, and on the daily ranging for a while. It would either break up or down. When it broke earlier this month, there were a couple of good opportunities to make money [and one possibly coming up as it retraces again. Trading the hourly charts may not be for novices [particularly on the trading psych area - it can be a bit stressful!], but just today there were a couple of other opportunities to make some bucks.

p.s. what systems do you use to day trade stocks? I am wondering if there are lots of similarities between at least the platforms and technical / fundamental analysis or not. I would love to follow equity charts, as well.

Hmm, interesting. Any equity chart traders want to pitch in? At least on currencies, I never heard of any way to tell when amateurs are trading. And when numbers went straight up & up [or down & down] it was often because resistance was broken... and there was no more resistance to contend with. Maybe one player put in enough cash to break the barrier [see Soros]. Eventually that run would halt, since a wise trader should start cashing out... but hey, if there are no barriers, it may keep running for a while. Definitely, amateurs would not have the $$ to really move currencies. Mind you, though, half of these 'pros' probably don't know much either - who knows, maybe a young guy in his 20's clicking buttons in a bank office! ==== Stocks can be different though, I assume. My initial assumption, coming from a technical currency background, would be simply that sell orders were hit at around 42 [which makes sense based on the previous peak - resistance]. But I am not confident that just small cash guys had the power to move this stock up... I would be interested in hearing from a stock trader on this one, actually! p.s. What type of a seminar was it?

Can you give some chart examples that you are looking at? And what do you mean with "amateurs"? I do know that in the currency markets amateurs account for a fraction of the big banks. Most of the time us "amateurs" [at home traders etc.] are just trying to ride the big boys' decisions. Rather interesting question