following up on my gbpusd predidction. second D1 inside bar has formed at major trendline signaling trend reversal.
H4 has closed above previous swing high. looking to buy near the swing low at 1.5520 ( double bottom region)
i have already closed my sell trades as H4 has closed above the previous swing high 1.5577.
yes. reversal plays are always high risk high reward. this trade i find it interesting as the stop loss is quite obvious (below the double bottom). indeed there was a shooting star candle after i posted it. but nevertheless if i had entered i would put my stop underneath the double bottom. i was thinking of entering long as there was a higher close indicated with the red arrow. it really is a gamble but a gamble that pays off really well while knowing exactly how much you will lose. so i would say risk low reward high. i would not mind losing 5% of my account everytime this kind of obvious trades shows up as i know that if i hit the right one, im the first on the reversal train.
but please do check out my other trades. working out quite well if you have been following. notable the GBPJPY AUDSD USDJPY AND EURGBP trade. EURGBP is also retracing and i am looking to sell into it once again.