Price is forming a small downwards trend to a pre-existing major ascending trend line.
The minor small pink trend line has a bearish bar forming outside.
RSI is close to the over bought.
I would like to sell the position down to the trend line. The projection of the trend line coincides with numerous levels of Fibonacci confluence.
although I don't count waves, this is a good example of the trend correction strategy that I use. This trade looks for the ABC correction in a trending market. The ABC usually completes at the 161.8 Fibonacci inversion of the retracement. Look for the market to fall off if it gets up to .7735.
As always, follow your plan.
Good luck and good trading
After price broke higher the structure zone, now GBPUSD is heading towards the reversal zone on 1H.
Reversal Zone is formed by:
1.414 Fibo Extension from the current structure Low to local high
1.618 FIbo Inversion
0.618 Fibo Retracement
Structure to the left (purple one)
You can enter aggressively on that structure trading opportunity or your entry rules -...
A butterfly pattern has formed with entry point the same as the Fibonacci Inversion trading setup. Market overextended itself against the trend and reached a strong sellers area. We are waiting for the rejection. Sell now!!
There is RSI Divergence in lower timeframes. Stop Loss and Targets as in chart.
Strong structure as resistance
3 fib confluence
equal measure move (AB=CD)
wait for RSI/candle confirmations
*I personally only trade fibonacci inversion setup. For the flag pattern, it's better to wait breakout confirmation.
equal measure move (XA=BC)
possible Cypher setup
4 fibonacci confluence
wait for RSI confirmation
Wait for Candle formation (Doji, Pinbar, or Lower low Lower Close candle)
if target touched, be ready for Chyper pattern!
Last week i put out an idea of how i thought the gbp/usd would be a "buy." This week i thought i would stay with this pair and give an example of how i plan ahead on my trades. The blue bar pattern is what i predict the market to do this week. If price rallies up to the 1.46685 level, i will be looking to go short on a fib inversion trade at the 1.618 ext. If that...
We have a fibonacci inversion trade setup currently at market right now on Eur/Jpy. The best thing about this current trade is the double top that price action has put in at the 1.618 fib ext. Normally when i trade this I place my stops above the 2.130 fib ext. Since a double top has been put in, it has allowed me to drastically reduce my risk. Now I have an even...
Many would call me crazy for looking to short the Cable ($GBPUSD) knowing that we're at a major level of structure on the daily chart, but IF we get the right type of retracement, there will be plenty of room to profit and exit the trade in what will simply look like retest of structure lows on the HTF.
As you can see on my chart price action has recently gone...