Free TRADE Idea: GBPUSD: Correction Completion May Lead Higher
This is a FREE trade idea that I post from time to time here. Note: PAY ATTENTION to the DISCLAIMER at the end of this post before you ask questions about this trade. I am reposting this trade EXACTLY as it was given to my members. So you are getting the EXACT same trade as them although delayed. This is a sample of the kind of trades they receive.
TRADE: BUY@1.44185 SL@1.43090 TP1@1.49075 R:R 5.0 Risk: 110*4 Reward: 489*4 Trade Ranking: 3.5
Simplicity. That is the key to reading charts clearly and being able to see the next move. That is lost on many traders as I see charts with BB Bands, multiple MA's, 2-5 lagging indicators, volume studies, ATR readings, pivots, etc all clouding the chart....and your vision! KISS principle. That is all you need. Take a look at this Daily Chart and see how clear it can be. It DOES NOT mean it is correct but when you can see this clearly, your chances of being correct increase greatly:
Once you see this, then what you can do is to start planning what you are going to do from there. I don't need to explain that chart to you as it is so simple, even a novice can understand it.
4HR CHART
So now that you see what I see on the larger scale, now I show you how I come down to a lower TF and break down the trade. In the main chart above, you might look at that and think it not clear but that would be because I have placed 2 scenarios onto one chart.
First, although I have shown you the bull pennant on the Daily chart, I am operating under a more immediately bullish scenario that would have prices moving higher without forming a contracting triangle. That scenario is in RED. I am seeing the wave (4) correction as being over with the wave (4) as having been a Flat correction. In which case, the next move can only be a wave (5) up.
The other scenario, the one that follows the bull pennant as in the Daily chart is in BLUE. It's requires no explanation.
Why did I show you these 2 scenarios? For the very reason why this is a good trade, IMO. You see. BOTH scenarios are saying the same thing...BUY! Regardless if this is a completed flat wave (4) or a triangle wave (4) in progress, both would call for a BUY at this point. So I do what the chart says to do. It's as simple as that.
No trade is 100% guaranteed to be correct of course. So I place my stops where if prices were to go to my stops, then it is highly likely that something else is happening here and that my wave counts are off. Place your stops where if you are wrong, you learn something from the mistake. Never place stops according to what you can afford to lose. If you can't afford the stop where you SHOULD place it, then you can't afford the trade. Find another trade you can afford. But don't compromise the stops just so you can get in the trade. You can also see that the risk:reward ratio is high. Everyone has their own idea of what kind of R:R they want but for me, I don't take trades less than 1:2 R:R. My suggestion: NEVER take trades that are only 1:1 R:R! That is simply bad trading and bad MM!
Good luck!
TRADE: BUY@1.44185 SL@1.43090 TP1@1.49075 R:R 5.0 Risk: 110*4 Reward: 489*4 Trade Ranking: 3.5
Simplicity. That is the key to reading charts clearly and being able to see the next move. That is lost on many traders as I see charts with BB Bands, multiple MA's, 2-5 lagging indicators, volume studies, ATR readings, pivots, etc all clouding the chart....and your vision! KISS principle. That is all you need. Take a look at this Daily Chart and see how clear it can be. It DOES NOT mean it is correct but when you can see this clearly, your chances of being correct increase greatly:
Once you see this, then what you can do is to start planning what you are going to do from there. I don't need to explain that chart to you as it is so simple, even a novice can understand it.
4HR CHART
So now that you see what I see on the larger scale, now I show you how I come down to a lower TF and break down the trade. In the main chart above, you might look at that and think it not clear but that would be because I have placed 2 scenarios onto one chart.
First, although I have shown you the bull pennant on the Daily chart, I am operating under a more immediately bullish scenario that would have prices moving higher without forming a contracting triangle. That scenario is in RED. I am seeing the wave (4) correction as being over with the wave (4) as having been a Flat correction. In which case, the next move can only be a wave (5) up.
The other scenario, the one that follows the bull pennant as in the Daily chart is in BLUE. It's requires no explanation.
Why did I show you these 2 scenarios? For the very reason why this is a good trade, IMO. You see. BOTH scenarios are saying the same thing...BUY! Regardless if this is a completed flat wave (4) or a triangle wave (4) in progress, both would call for a BUY at this point. So I do what the chart says to do. It's as simple as that.
No trade is 100% guaranteed to be correct of course. So I place my stops where if prices were to go to my stops, then it is highly likely that something else is happening here and that my wave counts are off. Place your stops where if you are wrong, you learn something from the mistake. Never place stops according to what you can afford to lose. If you can't afford the stop where you SHOULD place it, then you can't afford the trade. Find another trade you can afford. But don't compromise the stops just so you can get in the trade. You can also see that the risk:reward ratio is high. Everyone has their own idea of what kind of R:R they want but for me, I don't take trades less than 1:2 R:R. My suggestion: NEVER take trades that are only 1:1 R:R! That is simply bad trading and bad MM!
Good luck!
Comment:
Congrats to all who took the trade. It's now on it's way UP! I will be releasing a MAJOR MONTHLY update on this pair to my members and subscribers to my website this weekend. So be sure to register to my site to get it!
Also, join my Skype group for more analysis, updates and trades: Skype ID: andrewefx. (You must be a registered member to my site. It's FREE!)
Also, join my Skype group for more analysis, updates and trades: Skype ID: andrewefx. (You must be a registered member to my site. It's FREE!)
SPECIAL Report on the S&P 500. Read it here. It's FREE: bit.ly/2KGJ409spx818
Mailing list: bit.ly/2iNieEY
Facebook Group: www.facebook.com/efxselect
Twitter: @andrewefxselect
Website: www.efxselect.com
Mailing list: bit.ly/2iNieEY
Facebook Group: www.facebook.com/efxselect
Twitter: @andrewefxselect
Website: www.efxselect.com
Please keep in mind that I am not giving any trading signals or trade calls here. Only providing my own trade thoughts for your benefit and insight as to my trading technique and style. Please don't ask if you should or should not take the trade or ask for stop loss and take profit levels. Any SL or TP given on my trades are my own I have used for my trade and are not recommendations for you to use. If you are not sure, then you do not have a trading plan for yourself in place. I suggest you make one before you continue to do any trading!
If you like my posts and find them helpful, please take a second to hit that LIKE button and follow me so I can know my post was helpful to you. As always, any CONSTRUCTIVE comments are welcome whether AGREE or DISAGREE.
If you desire to receive ALL my analysis on pairs I trade and cover as well as REAL-TIME trade signals, consider joining my private group and my members. You'll get REAL-TIME trade signals and analysis as the trade happens and discussions those trades live. Interested? Go to efxselect.com to subscribe and get these signals in REAL-TIME!
Faceb00k: goo.gl/Mb81w7
Website: www.efxselect.com to subscribe
Join my Skype group: Skype ID is andrewefx (requires website registration)