Potential Trend Continuation Pattern
Note: Welcome back for some more chart analysis practice. As you know, I am not taking this trade in real life, and I have not back-tested this particular strategy on the GBPUSD, so I really don't know how this type of trading strategy will work on this currency pair. That being said, never trade anything you haven't back-tested on your own. Don't trade a strategy just because someone tells you it's a good strategy, always back-test the strategy in question over historical data before trading it with real money. Trading a strategy that has not been back-tested is the equivalence of gambling your money away, or trying to shoot a target when its pitch-black outside. You work hard for your money, so don't throw it away.
Hey guys, I found another trend continuation pattern opportunity here for some analysis practice on GBPUSD. So, I highlighted this opportunity yesterday but didn't post anything about it because it wasn't close enough to the 0.618 Fib level to mention it yet. But as you can see, after the market closed below the previous lowest low of 1.24811, it continued lower and closed lower @ 1.24504, there by making a new lower low. This leads me to believe that there is a good chance the market will continue the trend lower. Now that the market has retraced back into previous structure, which was support and has now turned into resistance, and has retraced back into the 0.618 Fib retracement level, I will look to hypothetically enter the market @ 1.25020. I will also place my stop loss 10 pips above the previous lower high @ 1.25500, and my target @ 1.24401. So far, the market appears to be holding a little above my entry point, and doesn't seem to have any real direction at this point, so we will just have to wait and see what happens.
Ultimately guys, while trading can be very simplistic at times, it is genuinely a hard skill to master, and if you are serious about becoming a consistently profitable trader, then you need to master chart analysis. So, take it seriously, get out there and practice it every day.
Know the risks, plan accordingly, and have a great day.
Follow me on YouTube @ Matthew Spositi
Disclaimer: This is not a recommendation or an endorsement to buy, sell, or take any positions of any kind, in any market. This is for educational purposes only.
Hey guys, I found another trend continuation pattern opportunity here for some analysis practice on GBPUSD. So, I highlighted this opportunity yesterday but didn't post anything about it because it wasn't close enough to the 0.618 Fib level to mention it yet. But as you can see, after the market closed below the previous lowest low of 1.24811, it continued lower and closed lower @ 1.24504, there by making a new lower low. This leads me to believe that there is a good chance the market will continue the trend lower. Now that the market has retraced back into previous structure, which was support and has now turned into resistance, and has retraced back into the 0.618 Fib retracement level, I will look to hypothetically enter the market @ 1.25020. I will also place my stop loss 10 pips above the previous lower high @ 1.25500, and my target @ 1.24401. So far, the market appears to be holding a little above my entry point, and doesn't seem to have any real direction at this point, so we will just have to wait and see what happens.
Ultimately guys, while trading can be very simplistic at times, it is genuinely a hard skill to master, and if you are serious about becoming a consistently profitable trader, then you need to master chart analysis. So, take it seriously, get out there and practice it every day.
Know the risks, plan accordingly, and have a great day.
Follow me on YouTube @ Matthew Spositi
Disclaimer: This is not a recommendation or an endorsement to buy, sell, or take any positions of any kind, in any market. This is for educational purposes only.
Trade closed: stop reached:
Hey guys, just wanted to come and give you guys an update on this trade. My analysis was unfortunately incorrect on this trade. The market did come up and hit my entry, and then promptly continued higher to stop me out. On the plus side, if I'm going to lose, I prefer for the market to stop me out as quickly as possible, that way I can move on and not have to think about it anymore. Well guys, I hope ya'll enjoy this analysis that I'm doing here. Have a great day and I will see you in the next one.