Original_Pip
Long

Wammie (Double-bottom) trade set up

FX:GBPUSD   British Pound/U.S. Dollar
164 6 5
Wammie trade: market reaches extreme low level/zone, the second touch which is higher indicated the market is running out of steam and is ready for a reversal.

Wammie trade set up!

-Market touches support zone twice
-The second touch is higher than the first initial touch
-The market prints a Bullish candlestick on the second touch
-Trade is entered with a buy stop a few pips above the bullish candlestick
-Stop loss placed few pips below the first touch (1.27893)
-The profit target is the next zone above the Wammie (TP1: 1.33787, TP2: 1.38739)
pipstrading
3 months ago
how do you calculate the TP2?
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Original_Pip pipstrading
3 months ago
Support zone created on 26th February 2016. TP2 slightly below this zone
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pipstrading Original_Pip
3 months ago
cool. thanks for your reply. is your TP1 derived from the weekly downward channel (lower bound)?
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Original_Pip pipstrading
3 months ago
No, I simply use the nearest support/resistance zones which I identify on the chart. With this trade set up I have identified 1.3378 zone/area as resistance since the market has reached this zone several times and failed to reach higher on two occasions, which adds to the argument that market may breach it third time round.
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pipstrading Original_Pip
3 months ago
thanks for sharing your thoughts. i am trying to establish the target for GBP.
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Original_Pip pipstrading
3 months ago
No problem, I use a strategy based on naked forex -which uses price action and market psychology to identify high probability trade set ups. I use zones as price targets because the market has memory and these zones act like magnets to price. If you are interested in finding out more check out the book: Naked Forex by Author Peter Walters. I am currently studying and backtesting his strategies.
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