GBPUSD: Trend Reversal and Sell Opportunity Short

British Pound/U.S. DollarFXCM

Description

⋅ Dec 9, 2019 6:25 PM

Trading against the main trend is risky. But at the same time, such an approach allows traders to catch a new trend in the beginning.

The price reached the resistance zone. We got reversal candlestick patterns. RSI confirmed the price reversal.

We got a bearish divergence. It is a trend reversal signal.

The price broke the local uptrend line, and it confirms the short term trend reversal. MACD supports the further downward movement.

DMI confirms the bullish trend, but ADX line falls. It is a signal that buyers don't have the power to push the price upward.

We have a sell opportunity.

Entry Price: below 1.31310
Stop Level: 1.31885
Profit Level: 1.30085

Risk per trade must be no more than 1% of your capital.

Comment

⋅ Dec 10, 2019 12:46 PM

The trading idea is still workable.

Comments

CryptAll

⋅ Dec 9, 2019 7:51 PM

Totally agree, Check same idea in my profile

DLavrov

⋅ Dec 10, 2019 12:45 PM

@TomorrowPapers, thanks for sharing!

DocWonmug

⋅ Dec 11, 2019 2:35 AM

Can you add any comments about the RSI divergence? I have marked the same thing, but often it seems it does not predict anything. Thanks.

DLavrov

⋅ Dec 13, 2019 8:45 AM

@DocWonmug, divergence is a very strong trend reversal signal. But it does not mean that you must be workable 100% time. Even if it gives 50% of successful trades - it is awesome!

hamod14355

⋅ Dec 10, 2019 5:40 PM

When it will go down

dariushT

⋅ Dec 10, 2019 11:25 AM

what about now ? all stop loses touched

DLavrov

⋅ Dec 10, 2019 12:46 PM

@dariushT, the trade is not activated. We have to wait.

SoonicTM

⋅ Dec 13, 2019 1:38 PM

So, how is it going with your "sell opportunity" arrived on "The price reached the resistance zone . We got reversal candlestick patterns. RSI confirmed the price reversal" ???

Resistance zone: yep, out of nowhere.
Reversal candlestick pattern: I don't know even where to start with this fallacy. The quicker you drop the whole "candlestick patterns" ideas the better.
RSI: just... forget it exists.

Just saying.

Ah, forgot: bearish divergence, MACD, DMI... all rubbish. Just accept it, and move on.