GBPUSD Long Direction: - The pair approached the end of a Bearish Cycle which may continue on the H4 time-frame, but on the H1 time-frame a reversal off bottom of level was due. - The pair was expected to enter a Bullish Cycle on the H1 time-frame now. - A multi-session W (Double-Bottom) pattern formed on the H1, giving us the direction, and also failed to take out YL (Yesterday's Low).
Entry: - Divergence appeared at the point of entry. - Shark-fin occurred near entry, at the first point of divergence (RSI broke back into the volatility-bands). - YL (Yesterday's Low) was held, indicating price action was probably not going to break this point. - Inverse Head & Shoulders pattern on lower time-frame (M15), with the head point being my entry. - You could have compound traded at the point the candle closed above the 50 EMA, which indicated less chance of resistance being shown.
Exit: - TP 1 was @ 200 EMA, which may be a resistance point. - TP 2 was @ YH, which may be another resistance point - SL was @ slightly below YL just in case they went to that price before shooting up.
Love this analysis, thanks for sharing! What are your settings for your RSI and signal lines?
FotiosDimitriou
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@Vanilla-G, Thank you, love sharing my trades to help people out. RSI Period is 21, Band Length is 31, Fast MA on RSI is 2, Slow MA on RSI is 9. These are the settings according with the TDI indicator on trading view.
Vanilla-G
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@FotiosDimitriou, Very helpful - looks like it's indicating well during these times, thanks man! Will look out for your ideas in future.
@FotiosDimitriou thanks for sharing the trade idea. Very nice to see a well laid out plan. My trade was based on the breakout of the bearish channel yesterday. Great work, thanks for sharing