Well as many traders have noticed the pound has formed a small D1 chart doji at resistance (Which in this case is the 50% Fib Retracement of the overall D1 Chart downtrend - I'll attach a D1 Chart). Also, we might have a potential channel formed during May-June's price action. And price has reached the top of that channel. And as others have mentioned the Risk/Reward on the trade is enticing! Hehe
I have yet to enter the trade. What I'm looking for is signs of bearish action such as a double top formation on the 1HR charts, etc. So the price for my trade entry may vary to the price shown on the chart (If the trade is entered at all). Stops will be within the approximate area shown, but preferably for this trade I'm looking to keep them around 80-100 pips from the entry price. First trade target is a little over 1:1 R/R to take some risk off. If trade is entered I will not move stops to break even if target 1 is reached, I will leave them as is, and take the rest off around the 2nd trade target which is around 1.5500 & 1.5650. Trade won't be anything large since it is a counter trend trade (I prefer trading more conservative sizes when counter trend trading), each half of the trade will be equally weighted in size (Either 1 lot for each target or 2 lots per trade target, most likely I'll just go with 1 lot for each target for a total of 2 lots).
D1 Chart Showing Rejection at the 50% Fibonacci level. Also showing why I'm considering this a counter trend trade, with the reasoning being price holding above multiple D1 moving averages.
Anyhow, I will try to keep you guys updated on the trade as much as possible but no promises are made lol. Happy trading and cheers to the start of another glorious week.. I'm off to have a glass of bourbon now. Lol =D
I have yet to enter the trade. What I'm looking for is signs of bearish action such as a double top formation on the 1HR charts, etc. So the price for my trade entry may vary to the price shown on the chart (If the trade is entered at all). Stops will be within the approximate area shown, but preferably for this trade I'm looking to keep them around 80-100 pips from the entry price. First trade target is a little over 1:1 R/R to take some risk off. If trade is entered I will not move stops to break even if target 1 is reached, I will leave them as is, and take the rest off around the 2nd trade target which is around 1.5500 & 1.5650. Trade won't be anything large since it is a counter trend trade (I prefer trading more conservative sizes when counter trend trading), each half of the trade will be equally weighted in size (Either 1 lot for each target or 2 lots per trade target, most likely I'll just go with 1 lot for each target for a total of 2 lots).
D1 Chart Showing Rejection at the 50% Fibonacci level. Also showing why I'm considering this a counter trend trade, with the reasoning being price holding above multiple D1 moving averages.
Anyhow, I will try to keep you guys updated on the trade as much as possible but no promises are made lol. Happy trading and cheers to the start of another glorious week.. I'm off to have a glass of bourbon now. Lol =D