Not just this pair but mostly GBP related pairs as well. It is now reaching an ascending wedge pattern on the day chart. This is bearish as we can expect an upcoming correction.
It can go much higher before falling. This fall would be a good chance to enter long again.
It can go much higher before falling. This fall would be a good chance to enter long again.
Comment:
Praise the Lord, a very bullish engulfing candle. Now it touches the upper channel, we need to see later if there would be any correction. Sellers, beware, fire power in bulls are really strong so if you have to sell, make sure you have a good strategy in place, avoid losing your ammunition unnecessarily.
Comment:
a few followers PM me about their fear of holding GBP pair as they kept on piling on their long, thinking it is off to wonderland.
First thing first, we know that price action does not move in a straight line up. They move in waves like structure, a few green candles up, followed by a few red candles down and then up again. So, if you do not know how to interpret the chart properly, you could be buying at the wrong time and suffer a temporary paper loss.
I said temporary because it all depends on your time frame. Some cannot withstand the loss in their account for even an hour, let alone days or weeks. This has a lot to do with your personality, capital, strategy and goals.
IF you are short term driven, then 1H or 15 min time frame may be your cup of tea. Fast in fast out, lots of adrenaline , excitement . Is that your style of trading ?
I had tried that before only to realise it costs me too much - health , mental and financial. All in the red so I take a break, go back to the drawing board, cut the weeds out, re-strategise and now I do trend trading which I think suits me better.
Some find it boring as the waiting time to exit is longer and they are impatient , want to be in the action all the time. So, to each his own, do what suits you, that is important.
If you open up this pair in the 1H chart, you may not like it unless you are shorting. It is down, down and down. But in the day chart above, it is still within the bullish trend line so I would be awaiting nicely to see the next buying opportunity at a lower price.
First thing first, we know that price action does not move in a straight line up. They move in waves like structure, a few green candles up, followed by a few red candles down and then up again. So, if you do not know how to interpret the chart properly, you could be buying at the wrong time and suffer a temporary paper loss.
I said temporary because it all depends on your time frame. Some cannot withstand the loss in their account for even an hour, let alone days or weeks. This has a lot to do with your personality, capital, strategy and goals.
IF you are short term driven, then 1H or 15 min time frame may be your cup of tea. Fast in fast out, lots of adrenaline , excitement . Is that your style of trading ?
I had tried that before only to realise it costs me too much - health , mental and financial. All in the red so I take a break, go back to the drawing board, cut the weeds out, re-strategise and now I do trend trading which I think suits me better.
Some find it boring as the waiting time to exit is longer and they are impatient , want to be in the action all the time. So, to each his own, do what suits you, that is important.
If you open up this pair in the 1H chart, you may not like it unless you are shorting. It is down, down and down. But in the day chart above, it is still within the bullish trend line so I would be awaiting nicely to see the next buying opportunity at a lower price.
