HOW TO TRADE LIKE THEM GBPUSD -catch the main trend
So a few weeks back I did posts on a few pairs that I will start to follow up on yet again to help trader cash in on the market direction., as long trend don’t happen trading lower timeframe thus patience is needed.
So let start with gu
The warning played off as I told traders to not trade this pair yet I know many sold and didn’t get much pips and verse.
Here’s why and what to expect next.
First note gu broke out resistant as we see with one week above it’s poc
Judging this breakout from the previous attempt we can see a difference in the weekly price action as the first has wicks and low vol . And price went back. From this point and many years forward and recently gu made another attempt yet with success.
Thus with any success breakout we want to see price retrace back into structure.
Why? Cuz this will confirm market direction. We want to see price get rejected from this area in which highlighted in gold.
Rejection from a range shows price isn’t want at current level.
Now also not as I said on the other gu post plz read
There is monthly bullish divergence
And Id show here the market structure That the market had make Here weeks ago and this is why I said gu Wasn’t going to be a good pair to trade .
These moves are done in phases
1.So we had a few hundred pip sale weeks back that was fast with big candles on weak mom.
This action is usually a fake out to lure traders to sale as they prepare to raise price.
2. They fake out the market direction
They use pattern to trap traders. They fake a cont trend for the greedy traders, and then stop them for the traders who try to pick bottoms and they stop them as well.
This is done to free out the market in both direction. I said all this before n it all can be seen right here !
3. They send the market in the indented direction
So the structure is a mountain double bottom we have currently as we can see on the weekly in the circle.
Now price is respecting the diagonal trendline price originally brought up sold down lower and brought up yet with respect to this trendline line
Note price between the 50 and 200ma. When price is like this this means that the market is ready to make it move as price will breakout from between them in the indented direction.
So what to expect and how to trade
We can expect a move to the upside as the first breakout was solid and price retraced back into structure we have bullish monthly divergence. Price hadn’t made and Tangible lows but goes into correction with respect to the trendline . Thus there are more bullish signs the bears but we have to look at this option as well.
Note we don’t see busted breakouts on higher times frames cuz it will require too much to do it. As busted bo is a bo retest bo Failure back up or down through the range in price go the opposite direction.
Thus if thus do happen it will be short lived. A better trade is for a failure at a bo high And this will be a sale or rejection back up to the poc.
Simple og way to trade is to draw a trendline and wait from price to cross it and bo above the range and retest the poc on the 15min.
Or a takeout of the rejected high with is a star candle .
Note also star candles are not reversal candle alone thus is another clue of future buying.
HOW TO TRADE LIKE THEM-
So let start with gu
The warning played off as I told traders to not trade this pair yet I know many sold and didn’t get much pips and verse.
Here’s why and what to expect next.
First note gu broke out resistant as we see with one week above it’s poc
Judging this breakout from the previous attempt we can see a difference in the weekly price action as the first has wicks and low vol . And price went back. From this point and many years forward and recently gu made another attempt yet with success.
Thus with any success breakout we want to see price retrace back into structure.
Why? Cuz this will confirm market direction. We want to see price get rejected from this area in which highlighted in gold.
Rejection from a range shows price isn’t want at current level.
Now also not as I said on the other gu post plz read
There is monthly bullish divergence
And Id show here the market structure That the market had make Here weeks ago and this is why I said gu Wasn’t going to be a good pair to trade .
These moves are done in phases
1.So we had a few hundred pip sale weeks back that was fast with big candles on weak mom.
This action is usually a fake out to lure traders to sale as they prepare to raise price.
2. They fake out the market direction
They use pattern to trap traders. They fake a cont trend for the greedy traders, and then stop them for the traders who try to pick bottoms and they stop them as well.
This is done to free out the market in both direction. I said all this before n it all can be seen right here !
3. They send the market in the indented direction
So the structure is a mountain double bottom we have currently as we can see on the weekly in the circle.
Now price is respecting the diagonal trendline price originally brought up sold down lower and brought up yet with respect to this trendline line
Note price between the 50 and 200ma. When price is like this this means that the market is ready to make it move as price will breakout from between them in the indented direction.
So what to expect and how to trade
We can expect a move to the upside as the first breakout was solid and price retraced back into structure we have bullish monthly divergence. Price hadn’t made and Tangible lows but goes into correction with respect to the trendline . Thus there are more bullish signs the bears but we have to look at this option as well.
Note we don’t see busted breakouts on higher times frames cuz it will require too much to do it. As busted bo is a bo retest bo Failure back up or down through the range in price go the opposite direction.
Thus if thus do happen it will be short lived. A better trade is for a failure at a bo high And this will be a sale or rejection back up to the poc.
Simple og way to trade is to draw a trendline and wait from price to cross it and bo above the range and retest the poc on the 15min.
Or a takeout of the rejected high with is a star candle .
Note also star candles are not reversal candle alone thus is another clue of future buying.
HOW TO TRADE LIKE THEM-
