Back to the initial though process of getting short, In this mornings Training session, I did a lesson on the different type of divergences. Regular vs. Hidden. While showing them an example on the GBPAUD I actually stumbled upon a trade that looked like a great opportunity. So I took it. (For those of you in The Syndicate program Jason broke down this trade in WARROOM as welI.) What I saw was a standard trend continuation trade with the being overbought and the presence of hidden divergence on the hourly timeframe. What I see on the 4 hour and doesn't scare me much as we've pushed past what I would have considered the reversal zone IF that structure level was going to hold. The test and hold of the 1.8400 level (w/rsi OS) is something I'm aware of, but my I don't need a push beyond that level to secure profits. With a risk/reward ratio of over 1:3 this was a no brainer hence my aggressive entry this morning.
I know I'm going to hear from you guys and I don't mind having the debate, all I ask is let's be professional and be open to the fact that in any market there has to be buyers and sellers at the same price level. Sometime's I'll be right, sometimes you'll be right. As long as we're all making money at the end then it's all good. So know strategy bashing please for you trolls out there.
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I'm curious if the X point of the butterfly in purple would be counted as a valid one.
I have a feeling that I shouldn't count that in because it's just 10 pips above the forming gartley in orange.
Thank you in advance,
Sorry to post this as it's not related to your post but I think this could be better than just send you a private message :)
According to structure, stops should probably go above the 1.000 handle. But quite honestly, I placed my stop where I did out of fear of being wrong and losing alot more pips than necessary. 250 pips to get to the 1.000 handle. I'm aware that response will garner a "you should probably stop trading" response :)
I also don't know if it was the low home loan number out of Australia last night or if the currency just got overbought, but it had a significant correction last night and may be looking to correct some more, taking it back down to test the neckline of the double bottom formation (one hour chart). If that happens, it decreases the value of the denominator in this pair and if the GBP stays about the same or turns up, the pair should push upwards. No prediction on a target! Let's see what happens and thanks for bringing this to our attention!