Nico.Muselle
Long

GBPUSD - Bat pattern completed - test previous support ?

FX:GBPUSD   British Pound/U.S. Dollar
1280 35 15
A bullish bat pattern has completed on this pair and a .382 retracement would take us right back to the previous support shelf that has been proven strong and that should now become resistance. Hence I don't think that we can get more out of this than a retest of that level.

As it is a bat pattern , RR is good, stops below 1.5189, I would even suggest a 1 ATR stop @ 1.5170 as we are trading a pattern on the 240 chart.

Good luck and may the pips be with you.
StarProsper
2 years ago
Loving this find Nico, well respected! Keep it up :)
+1 Reply
Nico.Muselle MOD StarProsper
2 years ago
Thank you for your supportive comments, really appreciate it and it motivates me to continue posting trading ideas !
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*UPDATE : the pattern completed but showed no clear sign of reversal so no trade was entered.
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IvanLabrie PRO Nico.Muselle
2 years ago
I'm looking at this one, it does have its merit...same, waiting for now. Can be a wave 1-2 of a new bullish impulse up (which could lead to 1.64 being hit). It could also be the first leg of a larger move down.
+1 Reply
Nico.Muselle MOD IvanLabrie
2 years ago
Thanks for your comment and you are right, we'll just have to wait a little more to see which direction it wants to go. A little reversal at this level is definitely expected but markets always have their own opinion :)
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IvanLabrie PRO Nico.Muselle
2 years ago
Definitely, all that is clear is that this level was the most traded at during this leg down, which makes me think it can hold.
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Nico.Muselle MOD IvanLabrie
2 years ago
But more bearish sentiment and the correlation with the EUR could push it past this level without even looking back. So I'm very cautious on both EUR and GBP pairs at this moment as far as long positions are concerned.
+1 Reply
IvanLabrie PRO Nico.Muselle
2 years ago
Indeed, my eurjpy short is at BE after covering half...gbpaud, same, BE stop, covered half. GBPCAD, same deal. Some 1100 pips total these past three days after a 14% drawdown. May we have many more green pips ;)
+1 Reply
Nico.Muselle MOD IvanLabrie
2 years ago
14% drawdown is huge ... but so is the 1100 pips in the last 3 days ... awesome recovery I'd say ! Good job !
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IvanLabrie PRO Nico.Muselle
2 years ago
Yeah, I've been down like that before, 25% was the worst, but then made a 50% recovery in a week. The daily chart short term trader's life. :p
+1 Reply
Nico.Muselle MOD IvanLabrie
2 years ago
LOL, I'm still learning on a demo account. Started my interest in trading last summer and it has been a difficult learning curve but getting better day by day. :)
+1 Reply
IvanLabrie PRO Nico.Muselle
2 years ago
Ah, I see...thought you were already trading with real funds.
I can do great on demos, have a 50k account that I took to 80k in 4 months.
I'd suggest trading real with a small account to drill the psychological part.
+1 Reply
Nico.Muselle MOD IvanLabrie
2 years ago
That's the next step, 5K account trading minilots. Although I treat the demo as if it were real money and apply the risk management and everything, I will need to confirm that the emotions and psychology will work out in that environment as well.
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IvanLabrie PRO Nico.Muselle
2 years ago
Yep, better go for real asap...and micro lots is the only way to trade for me. If you use standard, you need a 50-100k account.
+1 Reply
Nico.Muselle MOD IvanLabrie
2 years ago
Do you mean micro (1000) or mini (10000) ? I was planning on trading minilots (1 per trade) for starters, which would be OK from a risk perspective imho.
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IvanLabrie PRO Nico.Muselle
2 years ago
Micro...I can manage much better like that. Also, you can keep smaller amounts in multiple accounts or perform regular withdrawals, since you know, most FX brokers aren't that reliable considering their trading against customers policies... ;)
If you risk 2.5% per trade, to the stop, you can split your trade in 3 orders to scale in with micro, or to average down the entry while valid.
Vs going all in at once with mini.
Example:

5k account, you have an 85 pip invalidation level, you can have 1.47usd pips, but it'd be wiser to split in 3 50 cent pip orders instead. 50 cent pip order is 5 micro lots.
+1 Reply
IvanLabrie PRO IvanLabrie
2 years ago
Also, I like to make currency basket trades, treating multiple trades like a single entity...can't do that with mini unless you're better funded.
I can diversify and reduce my risk exposure in case one setup goes south.
+1 Reply
Nico.Muselle MOD IvanLabrie
2 years ago
So what you are saying is that you're hedging currency pairs if I understand correctly ?
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IvanLabrie PRO Nico.Muselle
2 years ago
No, reduces my risk. I use a relative strength approach and combine fundamental analysis to time momentum/volatility.
Technical patterns set the direction and targets though. Time at mode mainly, which I learned from Tim West.
I'm reading a couple of books on the subject of fundamental analysis now, one was a reccomendation from David Alcindor (Ashraf Laidi's 'Currency trading and intermarket analysis') and the other from Tim West (George Soros 'The alchemy of finance'), so definitely worth a read.
+1 Reply
Nico.Muselle MOD IvanLabrie
2 years ago
Hmmm ,interesting. I'll add them to my "to read" list. Thanks again ! :)
+1 Reply
IvanLabrie PRO Nico.Muselle
2 years ago
Anytime! That's what tradingview is for ;)
Happy pip fishing!
+1 Reply
Nico.Muselle MOD IvanLabrie
2 years ago
Same to you ! Looking forward to see what damage NFP will cause now :D
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Nico.Muselle MOD IvanLabrie
2 years ago
Useful advice, thanks for that. I will definitely look into it once I go live.
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TaiwoOkanlawon3a
2 years ago
do think non-farm payroll can send it down one more time before going up?
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Nico.Muselle MOD TaiwoOkanlawon3a
2 years ago
Hi, the NFP could have disastrous effects on this, so for sure I am not entering a trade on this pair before the dust on NFP has settled down and we get a clear vision on what could be next. :)
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TaiwoOkanlawon3a Nico.Muselle
2 years ago
Hi Nico,i started following two days ago and with your predication.i think i can recover my loss from binary option.Do you have a website or article i can read.Thanks
+1 Reply
Nico.Muselle MOD TaiwoOkanlawon3a
2 years ago
Hi, thanks for your confidence in my ideas. As I am pretty new to trading myself (actually still demo trading), I do not have a website (yet). Plans might go in that direction once I start trading live though. I'm glad you follow me, but do make sure you do your own analysis on the ideas that I post.
As far as trading education is concerned, I myself did a professional trading course which I am very happy with, now I'm just putting this knowledge into practise in my day to day analysis and trading setups. It's an approach I would strongly advice everyone to take before risking money in the markets.
+1 Reply
HexVex
2 years ago
I get hard when I think about it.
-2 Reply
Nico.Muselle MOD HexVex
2 years ago
LOL .. TMI ! :)
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DanV MOD HexVex
2 years ago
Oh, not you again. I am beginning to think you have some jealousy issue are mentally unstable. One of those who do very little to share their word of wisdom and cannot see positive of others effort. Well anyone reading this will make up their own mind on the matter. But as for you I think you will not achieve whatever it is you are trying to do which this silly comments.

If you have anything worthwhile then surprise me by publishing something. Would be very interesting to see what stuff you are made up of. Looking forward to it.
+1 Reply
HexVex DanV
2 years ago
Look at my trades! You can't can you :)
-2 Reply
DanV MOD HexVex
2 years ago
Yep, I have looked at your trades. Looks awesome. I would not hesitate giving you 100% but not sure if that will be enough for you.

Equally, that does not take way anything from this author. You can bark as much as you want. Makes no difference. Just because you disagree, you are making this your business to rubbish it.

Good job you do not rule the world. If you did you would be the only person left on earth as others will have been condemned by you and would not have hesitated in putting them out of the way. That is real smart.

Find something more productive to engage your bitter mind than this kind of nitpicks.
+1 Reply
jangseohee
2 years ago
if the horizontal breaks, we might see it to the bottom of channel?
snapshot
+1 Reply
Nico.Muselle MOD jangseohee
2 years ago
A very possible scenario, although I don't think it will break the horizontal line without a struggle as there has been some support/resistance in the past as well. A further downtrend is very likely though as your channel suggests :)
+1 Reply
cuteali13
2 years ago
5340 last move then back to 4800 side
Reply
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