moneymaking
Long

GBPUSD: 3 SIMPLE CHART PATTERNS POINTING TOWARDS POSSIBLE LONG!!

FX:GBPUSD   British Pound/U.S. Dollar
Hello Traders,

After seeing FX: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 :)
moneymaking
a year ago
IMPORTANT NOTE: Just wanted to clarify that, ASCENDING and SYMMETRICAL TRIANGLES, can broken in EITHER direction. This is why I have labelled targets for BOTH "BULLISH" and "BEARISH" BREAKOUT on the chart above (see the YELLOW and BLUE rectangles on the chart).
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FullTimeTrader
a year ago
Very interesting scenarios, choppy price action expected, i will stay aside and look for shorts for a possible bearish bat at a strong structure

snapshot
+1 Reply
moneymaking FullTimeTrader
a year ago
Hey FullTimeTrader, yes, it's been very choppy for sure. This is why I have forced myself to look for long opportunities ONLY after getting a strong break and close ABOVE the consolidation zone. We are also likely to get a fake breakout to trap the buyers and then move lower. Anything is possible after choppy price action. But one thing is for sure, that we are likely to get a big strong move, which ever direction we break into. High volatility should be expected after this much of low volatility.
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meganjack
a year ago
GBPUSD Short
+1 Reply
moneymaking meganjack
a year ago
Hey Johnson, great insight mate. All the BEST :)
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moneymaking
a year ago
UPDATE #1: Hi everyone, just a reminder that we have gotten a DAILY close ABOVE the 1.56470 level, although it is NOT a strong one. But according to simple chart pattern rules, this is a VALID BREAK and CLOSE above the resistance level. Now we just have to wait for a VALID retest of the BROKEN level, before entering into a long position.
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moneymaking
a year ago
UPDATE #2: Hello everyone, we have gotten a valid retest of the broken resistance level. I've placed long pending @ 1.5715 level, just above the key psychological round number. They usually act like resistance and once broken, they give us confidence of possible move higher. Thus just make sure to have your entry price just above the 1.5700 round number level. Stops have been placed below the lows of the retest green candle. Good LUCK to all :)
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moneymaking
a year ago
UPDATE #3: Hi everyone, I have placed long order at market price with stop loss placed couple of pips below the lows the current candle, which reacted quiet well from the 50 SMA. Good Luck to all :)
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