killrsquirel

GBPUSD Trend continuation into bullish Gartley

FX:GBPUSD   British Pound/U.S. Dollar
8 months ago
A 2 part technical trading idea that starts with a Trend continuation trade where price action retraces to a recent structural level with 0.618 fib confluence (not shown) and bearish divergence on the RSI . Target 2 is a bit higher than I would normally take because I did not want to be short after completion of a bullish harmonic pattern .

Next, a bullish Gartley pattern completes with the 0.886 right on top of a previous support level. Target 1 is always the .382 retracement of AD. For target 2 I really wanted t o go for the next structural level since it appears to be a stronger resistance level with 0.786 confluence and, depending on how long it took to get there, also coming in at the descending trend line. I had to remind myself to follow my (admittedly unwritten) rules to take target 2 at the 0.618 unless the pattern is part of a retracement in an established trend resulting in buying the trend continuation. Trade your plan.
8 months ago
Trade closed: stop reached: Part 1's stop was reached. In hindsight i was hasty on my entry given price action had just bounced off the major support level line shown. In recent history price had rallied from that level before returning, so the trend continuation trade was probably not the best of ideas. You could make a case for re-entry short as long as the high of 1.433 is not violated.
8 months ago
Comment: Got back in short on that shooting star that touched the drawn support level at 1.4287 that has perfect confluence with the 0.618 retracement level from point C to the low of that move. Target is the same as before (1.3950) Gartley completion will still be valid at a the 1.272 extension of CB but aiming to get in where point D is drawn.
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