Saturday, August 27, 2016

Time to know about potential fakeouts l gbp/usd overview for the week 28th August 2016

Forex strategies ways to find imbalance on a currency chart

Trading has been quite choppy during last but as chart speaks to you and there was no institutional and Banks involvement was seen and hence we don't seen price move strongly in one direction. Up and down both sides price found support and found sellers at the top. I really found a chart of gbp/usd, which I found of my liking and I think it will be better off to share.

Price Pattern to trade Potential fakeouts

If you take a look at the chart you will find reason there was strong rejection of the particular area on the top marked with blue rectangle and when price bounced of the lows this area hold the price for three consecutive rallies and then finally we see a break of the area and then price retreat of these levels and It was quite evident that we will see some reaction when this area will be again test and hence price found resistance again.

Friday rally was very low risk and Now I expect price to find support between 1.3120 and 1.3040 area, and rally again to 1.3280 for a test and this time If it got rejected we will set pending sell limit orders around those levels for another rally towards 1.2950 area, but IF price could not found support then we won't bother to look at this potential fakeout.

Saturday, August 13, 2016

ways to find true trends l exit and entry rules in Forex

Forex strategies ways to find imbalance on a currency chart

Trading has been quite choppy and reason being the expectations and japan and Britain focus has now again been shift to Federation and next meeting will be a concern that september rate hike talks would be strong and we can see a hike next month when federation member met for the policy discussions.

Ways to find true trends

Its always important for us to know the trending pairs and play a waiting game till the price itself talk about the next move. No laughing stroke, as I see chart talking about the next move and that is what a trader has to look out for. Recent price action in Aud/nzd tells me that parity is again on the cards specially when so many rejects and overall bearish trend is roaring and we see another rejection Friday and test of 1.0700 area will be rejected once again and we can see 1.0450 and 1.0270 are and that will be a much better trade entry with no risk at all.

Entry and Exit Rule

Sell stop at 1.0700

stop around 1.0735

Target first 1.0580

Target second 1.0450

I really want to test If price has rejected with purpose and supply from 1.0700 has been tested twice and reason I am quite confident that Price has engulf the last flag which was protected while it was tested last time and this time price has strongly rejected from the supply again and this time engulfing the demand strongly and that is the reason any test of 1.0700 will be rejected and that is why I always trading pairs which are trending and have clear swings and have least risk involved.

Swing trading is not easy but logic behind Swing trading is quite simple and you don't need any help of Indicators and other technical tools to spot the involvement of strong money as they hardly watch any chart to move the price and they use charts only for one purpose and i.e stop hunting. That trade of Aud/nzd can really help you trade naked charts once I post the chart in my next post of trade diary for the week August 14th 2016.

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