As you can see on my chart price action has recently gone through it's normal stages of expansion, consolidation, followed by expansion. My prediction is that we'll see some continued action off of our current lows and retest that previous level of consolidation where I have an initial killzone made up of Fibonacci retracements and an inversion.. That's where I'll be looking for my opportunities to short.
Each week in the Live Room and Syndicate, we seem to pick a single pair that we stalk for days waiting for the right opportunity. Last week it was the AUDCAD and that played out pretty well. Hopefully we can see the same here on the GBPUSD .
Other pairs on my radar to start the week are the USDCAD (which I'm already long this morning), NZDUSD and AUDUSD . Best of luck in the markets this week traders and if you want to see the video version of my Trading Recap just click the link below.
"Trading Recap Week #2: Attacking The $EURUSD" https://www.youtube.com/watch?v=lIxHziWFoTU
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I really would appreciate to let me know what you think about that because I face many times this kind of setup I am not sure exactly how to trade wisely? Thanks
Personally, I took this trade with stops approx. where you have it on 1, but I considered option 2 as well for a potential trend continuation trade shooting for the 1.27 fib extension.
My reasoning for putting my stop was that the structure level we are at is pretty strong. Even though price is moving in our favour, I'm still not confident that I made the right choice.
I haven't done much testing on other strategies than pattern trading, so I don't have Trend Continuation trading in my plan or the statistics to back it up. I just trade it on demo for practice and evaluation.