February 23rd, 2009
By: | Posted:February 23, 2009 12:00 am
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It's February 23rd, 2009 and time for our Angel Pair Picks!
We have several indications of trades today, but we aren't going to place any trades today.
Our trading methods indicate potential shorts on EUR/USD, USD/CHF, and AUD/USD. Also, there is indication of potential longs on the USD/CHF and USD/CAD.
Notice that our methods indicate both long and short positions for the Swissy. What this tells us, is that it is not very clear which way the market will move with those pairs. So we are simply going to stand aside on them. Sometimes the best trades are the trades you DON'T take.
For the EUR/USD, we are going to pass given the recent market indecision. If we were going to take this trade, we would sell on a stop at 1.2660. The initial stop loss would be 1.3005 with a take profit of 1.2472. Notice this is risking 345 pips for a possible gain of 188 pips. We don't think this is a good risk-reward ratio, considering the recent movement. We will wait to see if a better trade comes along another day.
The AUD/USD shows us the same conditions. If we were to place this trade, we would sell on a stop at 0.6348 with an initial stop loss of 0.6601. With a profit target set at 0.6238, this means a potential risk of 253 pips for a potential gain of 110 pips. Again, due to the latest market indecision, we feel it would be better to stand aside.
The USD/CAD shows us indications of a longer term uptrend. Our indicators are showing us that the market is somewhat overbought. However, because of the trading range over the last few days, the buy price and stop loss is prohibitive. If we were to place this trade, we would buy on a stop at 1.2658, with an initial stop loss set at 1.2344 and a take profit at 1.2803. Besides the poor risk-reward ratio, the buy price of 1.2658 puts it near squarely at a resistance level, and the take profit well past it. Basically, even if we placed this trade, it would be unlikely to execute, and if it did, would be unlikely to be profitable.
However, knowing when not to trade is just as important as knowing when to trade. We are up over 80% on our money this month alone, and we prefer not to risk that on trades that are less than desirable.
Even though we aren't placing any trades 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.
