February 18th, 2009
By: Lisa
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It's February 18th, 2009 and time for our Angel Pair Picks!
None of our trading methods are showing high probability low risk trades today. However, we will look at the pairs and see why we might want to stand aside, or if we want to place some trades.
The EUR/USD recently had a big drop, pushing it to near 3 year lows. While there is some possiblility for continued downward movement, we feel it is more likely to retrace some of its recent downward push. In any event, we trade on trends, and there is no clear indication of a trend here.
The GBP/USD has been trading in a sideways channel for the past several days. For scalpers and very short term day traders, there might be some money to be made, but again, we trade on trends, and sideways trends don't work for us.
For the USD/JPY, we stopped ourself out of our trade early, but don't feel there is enough room for continued upward movement right now. We are nearing resistance, so expect either a flat day, or a drop in price. Without being fairly certain, we aren't going to risk trading when we don't have to.
The USD/CAD shows some potential for the downward momentum to continue. While our trading methods say this isn't a high probability low risk trade, we feel fairly confident that the price will move down, at least a little, short term. So we placed two 1-lot trades, selling at market. Our initial stop loss is 1.2675, and we are setting a 15 pip trailing stop on both lots. We don't expect a huge drop in price. Basically we are looking to gain a few pips here on consolidation of the pair.
We are basically doing the same thing for the AUD/USD, in reverse. We placed two 1-lot trades, buying at market. Our initial stop loss is 0.6329, and we are setting a 15 pip trailing stop on both lots.
While there has been recent upward movement for the USD/CHF, there is still no clear upward trend to place trades with. As a matter of fact, it has been trading in a channel for the past week or two, and is still in the channel range. So once again, no strong indication of a tradable trend.
Keep in mind, the trades we placed today were not high probability low risk trades. We probably shouldn't have placed those trades at all. However, we believe that we can make a few pips on those pairs. But we also know we could get stopped out for a loss on these very easily. It is a risk we are willing to take today.
Check back tomorrow to see how our picks make out! And let us know how YOUR trading is doing!
IMPORTANT NOTE: These are not Forex picks nor Forex recommendations. This information is provided for educational and informational purposes only. Use this information at your own risk. You MUST apply your own trading methods and your own opinions to an Angel Pair Pick to determine if a trade should be considered. Also, you do not need to trade all of the Angel Pair Pick pairs, nor should you. There's no need to place more than a few trades on any given day and our recommendation is when you get to 6 open positions, don't add any more trades until one of them is closed out.
Note: Forex, futures, stock, and options trading is not appropriate for everyone. There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or methodology has ever been developed that can guarantee profits or ensure freedom from losses. No representation or implication is being made that using Angel Pair Picks will generate profits or ensure freedom from losses.
