GBPUSD: 3 SIMPLE CHART PATTERNS POINTING TOWARDS POSSIBLE LONG!!
Hello Traders,
After seeing
GBPUSD
consolidate within a range for the past 30 days, we have gotten the emergence of 3 Simple Chart Patterns that could present us with good opportunities to LONG on this particular pair. I have color coded all 3 Chart Patterns in the chart above, just to make it visually easier for everyone. I will walk you guys through all 3 Patterns, pointing out exactly where our entries, exits, and stop loss levels are going to be at.
1st Pattern: BULLISH RECTANGLE
Entry: Placing a buy order on the retest of the broken rectangle. See the "possible scenario" labelled on the chart above.
Stop loss: After getting a valid retest of the broken rectangle, stop loss can be placed just couple of pips below the lows of the retest candle. This allows us to lower our potential risk on the trade. Note that the stop loss labelled in the above chart is for aggressive long entry. Which why it's better too wait for a valid retest before going long.
Target: The total height of the bullish rectangle. For this setup the height is about 180 pips (see the cloned rectangle (colored purple) in the chart above).
2nd Pattern: ASCENDING TRIANGLE
Entry: Placing a buy order on the retest of the broken triangle. See the "possible scenario" labelled on the chart above.
Stop loss: After getting a valid retest of the broken triangle, stop loss can be placed just couple of pips below the lows of the retest candle. This allows us to lower our potential risk on the trade.
Target: The total distance of the ascending triangle’s back. For this setup the distance is about 317 pips (see the yellow rectangles in the chart above).
3rd Pattern: SYMMETRICAL TRIANGLE
Entry: Placing a buy order on the retest of the broken triangle. It looks like the market has already broken the symmetrical triangle and has given a good retest. But I would wait for a break and close above the 1.56470 level on the DAILY chart, before jumping into the long trade.
Stop loss: After getting a valid retest of the broken triangle, stop loss can be placed just couple of pips below the low of the retest candle. This allows us to lower our potential risk on the trade.
Target: The total distance of the symmetrical triangle ‘s back. For this setup the distance is about 760 Pips (see the blue rectangles in the chart above).
KEY NOTE:
We MUST wait for a break and close above the 1.56470 level on the DAILY chart, before trading any of the 3 Chart Patterns mentioned above. We also have a rising channel formed on the RSI as well. We are also getting good RETEST of the 50 Day Simple Moving Average (SMA). Do leave a comment below if anyone is overwhelmed by reading this much information and needs any type of clarification. I will gladly provide any help, if needed.
Please feel free to AGREE or DISAGREE with this idea by leaving a comment below. Hit that thumbs up button (top left corner of this chart) if you like the idea. Thank you everyone for all the SUPPORT that you have given me so far, I truly appreciate it. Good luck everyone :)
After seeing
GBPUSD
consolidate within a range for the past 30 days, we have gotten the emergence of 3 Simple Chart Patterns that could present us with good opportunities to LONG on this particular pair. I have color coded all 3 Chart Patterns in the chart above, just to make it visually easier for everyone. I will walk you guys through all 3 Patterns, pointing out exactly where our entries, exits, and stop loss levels are going to be at. 1st Pattern: BULLISH RECTANGLE
Entry: Placing a buy order on the retest of the broken rectangle. See the "possible scenario" labelled on the chart above.
Stop loss: After getting a valid retest of the broken rectangle, stop loss can be placed just couple of pips below the lows of the retest candle. This allows us to lower our potential risk on the trade. Note that the stop loss labelled in the above chart is for aggressive long entry. Which why it's better too wait for a valid retest before going long.
Target: The total height of the bullish rectangle. For this setup the height is about 180 pips (see the cloned rectangle (colored purple) in the chart above).
2nd Pattern: ASCENDING TRIANGLE
Entry: Placing a buy order on the retest of the broken triangle. See the "possible scenario" labelled on the chart above.
Stop loss: After getting a valid retest of the broken triangle, stop loss can be placed just couple of pips below the lows of the retest candle. This allows us to lower our potential risk on the trade.
Target: The total distance of the ascending triangle’s back. For this setup the distance is about 317 pips (see the yellow rectangles in the chart above).
3rd Pattern: SYMMETRICAL TRIANGLE
Entry: Placing a buy order on the retest of the broken triangle. It looks like the market has already broken the symmetrical triangle and has given a good retest. But I would wait for a break and close above the 1.56470 level on the DAILY chart, before jumping into the long trade.
Stop loss: After getting a valid retest of the broken triangle, stop loss can be placed just couple of pips below the low of the retest candle. This allows us to lower our potential risk on the trade.
Target: The total distance of the symmetrical triangle ‘s back. For this setup the distance is about 760 Pips (see the blue rectangles in the chart above).
KEY NOTE:
We MUST wait for a break and close above the 1.56470 level on the DAILY chart, before trading any of the 3 Chart Patterns mentioned above. We also have a rising channel formed on the RSI as well. We are also getting good RETEST of the 50 Day Simple Moving Average (SMA). Do leave a comment below if anyone is overwhelmed by reading this much information and needs any type of clarification. I will gladly provide any help, if needed.
Please feel free to AGREE or DISAGREE with this idea by leaving a comment below. Hit that thumbs up button (top left corner of this chart) if you like the idea. Thank you everyone for all the SUPPORT that you have given me so far, I truly appreciate it. Good luck everyone :)