FullTimeTrader
Short

GBPUSD-bearish hole next week

FX:GBPUSD   British Pound/U.S. Dollar
1839 9 31
Hello, im using here the same setup i used before on other GBP pairs : convergence-divergence together with other reasons:

- AB=CD pattern (pink line)
- 0.61 fib retracement
- convergence on AO
- price retesting the broken trendline
- strong structure as resistance

On H4 chart.

- another AB=CD pattern
- Divergence

snapshot

The SL is not so good, i was busy last friday managing other opened trades.

Regards
Great analysis.. I am exactly the same to this one and already in with a short trade.. Good luck!
Reply
Why have you included an invalid AB-CD pattern in your trading strategy ?
Reply
Hello, wich one is invalid? I will explain my reasons both on D1 and H4 charts. First, when talking about AB=CD pattern we always talk about a zone, not exactly to the pip. I trade AB=CD not everywhere but based on other reasons, mainly Elliott Waves. In this case on D1 chart i consider price is forming a complex WxYxZ correction, and the X leg are almost equal:
snapshot
+1 Reply
FullTimeTrader FullTimeTrader
On H4 chart i see price formin an ABC zigzag with the relationship shown on chart. Regards.
snapshot
+1 Reply
Pip-thief FullTimeTrader
On your very first chart, not the two you have attached after my comment. Your AB-CD pattern drawn with pink lines is invalid. It is invalid because your B-C leg extends beyond point A and therefore is not recognised and cannot be integrated as such a pattern in your chart, regardless of how you trade them.
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Can we enter right now in short?
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FullTimeTrader FrancisPujols
Hello, its depends on you trading system, timeframe, etc, many reasons. PERSONALLY i would prefer a retracement on H4 chart to have a better R/R ratio. Regards.
+1 Reply
FrancisPujols FullTimeTrader
You mean a pullback?
Reply
FullTimeTrader FrancisPujols
yes
Reply
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