I put together this educational post due to my poor analysis on some GBP pairs last night. Presented pair is GBPUSD. It is important to backtrack and figure out a future solution for a losing trade.
This is an extremely informative and effective time frame strategy especially for this currency. I have presented the major GBP pairs and results from the 2 am and 8 am marks.
2am is a universal pullback time depending on what the trend is. In the case of GBP pairs last night we were in a strong downtrend. As you can observe from the charts, when in a downtrend you can confirm a pullback into continuation by observing the pullback trend prior too 2 am. If we see a consolidating pullback with a 1 am candle that does not sentiment towards a trend reversal you can almost %100 confirm downward trend continuation at 2am. Now if we are in a strong uptrend, reverse the strategy and expect a pullback at at 2am.
* Important Rule: Whether the trend is bullish or bearish, if there is no consolidation prior to the 2 am mark we gauge a continuation to the next major rejection off support/rejection or in the case of GBP pairs, 8 am when the index opens. (I mapped this rule out on GBPUSD chart)
8 am is significant with GBP pairs due to gbpusd index opening. We may see a pullback against the trend depending on the strength of the index which will confirm a continuation or pivot. This strategy can be used nightly offering safer trading by following the trend pattern from these time points. The following charts are results from other GBP pairs.
GBPCAD
GBPNZD
GBPJPY
GBPCHF
This is an extremely informative and effective time frame strategy especially for this currency. I have presented the major GBP pairs and results from the 2 am and 8 am marks.
2am is a universal pullback time depending on what the trend is. In the case of GBP pairs last night we were in a strong downtrend. As you can observe from the charts, when in a downtrend you can confirm a pullback into continuation by observing the pullback trend prior too 2 am. If we see a consolidating pullback with a 1 am candle that does not sentiment towards a trend reversal you can almost %100 confirm downward trend continuation at 2am. Now if we are in a strong uptrend, reverse the strategy and expect a pullback at at 2am.
* Important Rule: Whether the trend is bullish or bearish, if there is no consolidation prior to the 2 am mark we gauge a continuation to the next major rejection off support/rejection or in the case of GBP pairs, 8 am when the index opens. (I mapped this rule out on GBPUSD chart)
8 am is significant with GBP pairs due to gbpusd index opening. We may see a pullback against the trend depending on the strength of the index which will confirm a continuation or pivot. This strategy can be used nightly offering safer trading by following the trend pattern from these time points. The following charts are results from other GBP pairs.
GBPCAD