Following Fridays high impact news coming out of the UK, the pair has yet to recover from the weekends hangover, with price making lows not seen since Whitney Houston' Saving All My Love For You was number 1 in the charts!
Price fell sharply during the Asian creating a fair value gap (FVG) which was filled throughout the London open, price continued climb during New York open and swept a pocket of buy stops resting above 1.08500 levels and continued up past the 1.09000 level, beaching it by around 20 pips (depending on your servers price delivery and broker spread). Price then rejected the big figure previously stated then continued lower creating a FVG and sweeping short term lows and seen side liquidity.
Im anticipating price to fill in the FVG and keep rising to the 1.07850 level (the bottom of the bearish order block) before continuing lower to take out the sell side liquidity around the 1.0450 level
Price fell sharply during the Asian creating a fair value gap (FVG) which was filled throughout the London open, price continued climb during New York open and swept a pocket of buy stops resting above 1.08500 levels and continued up past the 1.09000 level, beaching it by around 20 pips (depending on your servers price delivery and broker spread). Price then rejected the big figure previously stated then continued lower creating a FVG and sweeping short term lows and seen side liquidity.
Im anticipating price to fill in the FVG and keep rising to the 1.07850 level (the bottom of the bearish order block) before continuing lower to take out the sell side liquidity around the 1.0450 level
Comment:
I forget to talk about stop-loss placement - stops will be placed above the bearish order block notated on the chart. If price breaches this it will invalidate my analysis
Comment:
FVG filled ..... waiting for price to enter target entry @ 1.07845
Comment:
Entry tagged as I was sleeping. Now to watch as see how price is delivered as we approach the London open
Comment:
I have taken a portion of the trade off at the area of consolidation marked out on the chart above, where the move upward started from. Moved stops to break even.
It's essential that you pay yourself by taking partials out if the trade as price approaches ares that could cause rejection and or reversal, such as recent lows in this case or recent highs in a long position. It's a reward for the work we put it doing our analysis. No one ever went broke taking profits.
It's essential that you pay yourself by taking partials out if the trade as price approaches ares that could cause rejection and or reversal, such as recent lows in this case or recent highs in a long position. It's a reward for the work we put it doing our analysis. No one ever went broke taking profits.
Trade closed: stop reached:
Stopped out at break even on the BOE announcement. As stated above its good practice to take something out of the trade as price reaches potentials areas where price could reverse, or like today, a surprise announcement could be made that causes sizeable spikes in price