GBPCAD, easy mean reversion trade Just like the EURGBP, the GBPCAD is in a perfect condition for a mean reversion trade. It’s important to titrate your positions in a move like this because the end of the move has occurred, there is always a follow up capitulation drive that occurs. I am long at 1.6926 with limit orders below at 1.6907, 1.6873 and 1.6851. From the prior swing on August 15th, 2018, today is 280 days from that day – well within Gann’ 270-degree cycle of the inner year. This is one of 3 90-day cycles and because this move has formed a higher low, it’s perfect for entry against the square of price and time (which is on May 31st @ 1.6938). The RSI is at a 2019 Low and is the 2nd lowest low in over a year. And, shockingly, the Composite Index on the daily chart has reached the lowest level it has been since October of 2016. The moon phase here exacerbates the bullishness of this condition. Expect a VIOLENT move higher and without warning.
Trade active
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Added 2 lots at 1.702
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2 lots added at 1.6844
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Still active - prepping for bounce.
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2 lots added at 1.667
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Added 2 lots at 0.6597
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Still holding and active - it's July 3rd, an important Gann date where moves culminate and trends terminate between July 3rd and July 7th.
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Added 4 lots at 1.624
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Sold 1/2 for profit, will sell another quarter at 1.7704
Trade closed: target reached
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remaining positions sold at 1.7704 and 1.7755, all profit.
After watching this for quite sometime now, this is where I have placed my first buy 1.6637.
I also believe that your Gann doesn't work.
itsjustanalysis
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@TraderAvDM, I guess it depends on your tolerance for paper loss - I've got a pretty long horizon and tolerance so a 300-400 drop on something like the GBPCAD pair is perfectly normal. I added today as well! :-)
TraderAvDM
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@captainquenta, Of course it's quite normal. But still doesn't explain the fact that your Gann charts don't work.
itsjustanalysis
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@TraderAvDM, I think they work great, I always find myself tagging entries a little too early and sometimes the cycles turn into continuation moves, but my Gann chart work great for me! :-)