Patterns

Traders love patterns. We trade chart patterns,oscillator patterns,historical patterns-you name the pattern, chances are there is some one trading it.Much of trading boils down to pattern recognition and the ability to to quickly identify and act upon possible pattern as they occur .Processing market patterns in the midst of our own emotional patterns our tendencies toward impulsivity, hesitation,frustration and regret is one of the greatest challenges of active trading.

EURUSD This currency pair is still timid in moving up.Eventhough it broke HP 5753 of 25th and touched 5767 .The price moved down and closed on 5743 below 20 SMA resistance on 5775.If it breaks today the price target is 5949.The inherent buying strength continues. Buy a break above 5775 or stand aside.

Game of Averages

When a trader first enter in the arena of trading with full of energy, enthusiasm, and hopping to make good money looks for perfect methods which will give success every time.He changes from system to system just like searching a black cat in a dark room. It is nowhere. He gets dssipated of all his enrgies.
There is no holy grail in trading.It is a game of probability and averages.If you can find a method which gives you 40 and above winning percentage with a good risk reward ratio and you can trade the method day out and day in you make good money in trading.Easily said but very difficult to practice
EURUSD pair in a tight range .Broke HP of 25th July 08 ,1.5753 to touch 1.5769.There is no follow through of the break-out.Be on the side line waiting for a clear direction this week.