EURO and GBP made nominal swings and rised more during US session above high as extended move.The players are gaining levels and inducing short covering and traders turning long.Their intentions could be revealed tomorrow when they make the opposite of their week beginning hurried moves.

When the technical traders found the resistance above 1.66 area in GBP and 1.43 area in EURO the players broke the reistance now to show as support.When traders keep away from market ,afraid of selling and buy near the resistance turned support the players are expected to drop more to induce long liquidation and then shift the trading zone to higher levels during prime data releases like interest rate decisions and NFP data release in this week.

Regards

Dr.Sivaraman

This is a very common affliction, especially among technical traders. Paralysis by analysis can occur when traders have too many studies on their charts and seek endless confirmations before taking any action. This is the polar opposite of traders who initiate trades recklessly based on “gut feeling” alone. Paralysis by analysis may be the lesser of the two evils, but both of these afflictions can be extremely detrimental to forex traders.

There is a lot of good in being cautious and conservative when deciding to take trades, but becoming paralyzed by the decision-making process can be totally counterproductive. Having all of the latest and greatest indicators on your charts can be exciting, but will it really help you become a better trader? Maybe, but probably not.

A good remedy against paralysis by analysis is a combination of solid risk control and money management. Technical analysis is very helpful in setting risk management measures like a logically-placed stop loss that’s not too tight and not too loose, and a good reward-to-risk ratio. And money management is an absolute essential for any trader who wants to be successful. With these prudent measures in place, traders need not be paralyzed by the trade entry process. A trader will never come anywhere close to 100% correct, even with 50 indicators, oscillators, trendlines and squiggly lines pointing in the same direction at the same time. But that’s perfectly okay, as long as risk and money management are in good order.

This is not at all to say that traders should ever just jump into trades without first doing their proper analysis. As mentioned, that is an evil in and of itself. But there are many traders that are utterly unable to pull the buy/sell trigger unless all of the many stars in the galaxy are perfectly aligned. This almost never happens.

Stick to the essentials and only what works best for you over time. When a good opportunity presents itself according to your careful analysis, take it. But always have strict risk controls and money management guidelines in place.

- James Chen, CTA, CMT

* I will be key speaker at FXstreet.com’s International Traders Conference in Barcelona, Spain in October 2009 - for more information, please go to: www.traders-conference.com .

* For information on my book, Essentials of Foreign Exchange Trading (Wiley), please click here.

* Follow my intraday forex updates on Twitter: http://twitter.com/JamesChenFX

Technical Traders: Veteran Traders Share Their Secrets and Strategies

An elite group of traders and technical analysts gathered in Las Vegas last weekend to educate and enlighten several hundred attendees of the 21st annual TAG (Technical Analysis Group) conference. For two and one-half days, these respected market watchers shared their trading secrets and strategies.

Following are some trading and technical tidbits this writer picked up from this year’s TAG 21 conference, which was put together by Tim Slater, a respected technician in his own right, and was sponsored by INO.com.

• One of the themes coming out of this year’s conference was the increased volatility in the stock market, and how traders with a futures-related trading background have used their experience with volatility to obtain better entry and exit points in stock trading. Most agreed that whether one trades stocks, or financial futures, or commodity futures, there are key trading techniques and tenets that apply to all three.
• All the speakers heard by this writer pointed out that successful traders must have a specific trading plan before they execute a trade–and show keen discipline in following through on the plan. This includes entry points and potential exit strategies–including setting stops. Always set a stop when trading.
• Keep a diary when trading. This helps identify any trading mistakes, or trading successes, in future decision-making on trades.
• Have a money-management plan. This is a must. Know what your financial risk tolerance is and trade accordingly.
• Don’t add to a losing position.
• If you are in a trading slump, take a break for a few days or weeks, in order to reflect upon your trading methodology.
• Do not overtrade. This is a common mistake among many traders.
• Take advantage of market trends. “The trend is your friend” saying rings true. Use extra caution when trading against the prevailing trend of the market. Don’t try to pick tops or bottoms.
• Let your profits run and cut your losses quickly.
• The fundamentals in any given market are always most bullish at market tops and most bearishat market bottoms. This is where the “buy the rumor, sell the fact” anecdote sometimes comes into play.

There is no Holy Grail in trading. There is no “free lunch.” Trading successfully is hard work.

Most speakers said their methodologies should be used as one “tool” amid a variety of tools in
your own trading “toolbox.”