Last week i shorted GBPUSD and this trade is been working very well till now. Price is heading towards our initial target but i have already trailed my stoploss for excellent profit. You can see the progress of this setup in the related link below.
Let's analyze now a new setup which looks very strong. Price is moving in a corrective structure into a nice descending channel after a rally which broke a long term resistance level (black trendline). In the channel i have indetified a bullish butterfly pattern with its D point at a very strong support level.
Butterfly's D point parameters:
- It's between 0.618 - 0.786 of the impulse leg which broke the long term resistance level. - It's at the bottom line of the channel. - At the same point we can see an AB=CD bullish pattern. - Looking to previous structure we see a strong horizontal level.
As for profit we can target the upper trendline of the channel although i strongly believe that price can go beyond that and test 0.618 of the major move to the down.
fantastic work John, I wish I could do this like you. It makes sense tho I can see, so impressive!!! Good luck and hope I might learn more from you, Joe
Fxprotrader
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Thank you for your kind words. It takes time if you want to improve your trading.. I am now working on a new website where i will explain exactly the way i analyse the markets. I will let you know when it'll be ready.. Have a nice day.!
lijie
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tupaitrader
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greattt!!
lijie
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THANKS
Fxprotrader
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You are welcome..
lijie
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THANKS
Fxprotrader
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Lijie the chart you posted shows a previous entry, right?