As you grow your skill of Technical Analysis, you’ll read many, many opinions out there. Be careful. As you have with me, read people’s analysis over time. It is VERY difficult to watch someone over time to see that if his/her technical analysis is actually true most of the time, or if they’re just writing their opinions which are wrong most of the time.
Fortunately, all of my analysis is historically documented on my blog. I purposely refer to my prior forecasts and analysis so that it’s readily available and “in your face”, that you, the reader, can see that hopefully everything I have forecasted is true…or at least 95% of the time.
It takes time to find people you trust who provide meaningful analysis of foreign currency pairs. Besides my site, I recommend reading http://www.dailyfx.com for technical analysis of foreign currency pairs. However, I was reading an article the other day written on 06-09-2010 about how the person was targeting lows around 1.4250. The main part of the article said:
“After making a lows around 1.4350, Cable has popped higher to 1.4600 where it has found temporary resistance. Actually, this area has served as a significant area to watch as it was strong resistance back on 5/26 – 5/27, and then as strong support 6/1 – 6/2. Will it hold as resistance now? Maybe so, but in case it doesn’t, I have decided to adjust my stop to 1.4620–just above today’s high.
This locks in further profits ahead of the UK interest rate decision (Thurs, 11 am GMT) and major US data this week (Retail Sales, Fri 12:30 pm GMT). I will continue to target recent swing lows–around 1.4250–and I may close down this trade over the weekend.”
While PipCrawler placed their stop at 1.4620, my trade took their stop out and went further up. While Pipcrawler was targeting 1.4250, I had been saying for the past three weeks that the GBP/USD would move up toward 1.5060.
My point here is that these two traders, myself and Pipcrawler, were going two completely different directions. He was shorting. I was going long. Of course, the GBP/USD went the direction I had forecasted, but the point is…it takes time to find consistent analysis out there. Be careful when reading people’s technical analysis. No one will ever be on target 100% of the time, but they should be providing correct analysis most of the time.
LattePIPs 