The EURGBP is one of the best currency pairs to trade since the referendum. Seems ready to start again …
Wrong break cancellation
The FBR is one example of a major reversal. They appear many times, but they can take us out because we have to stay in the dominant trend.
It started with Harami last Friday. It has been down since Monday, so it was seen with a downward trend that has been going on since July.
He returned at the end of the day and left a long wick behind, turning the day’s trade into a Hammer of the best price action candles.
The price was approved by the FBR on Tuesday. The rule is that when the price returns from the highest level of the negative break candle, the FBR is set. The previously sold trader closed, then turned back.
That’s exactly what we did.
An additional technical comeback is Hikkake. It consists of at least three candles, starting from the Haram. A bull Hikkake is triggered after a break, a recovery on Monday and a break at Harami’s highest level on last Friday.
Number of waves …
Counting waves can be confusing, they don’t always follow the rules! These five waves were more pronounced with the same up and down. A reversal was needed, but the trend could continue as seen on Monday morning.
The fifth wave ends with a comeback, and at the end of Monday, Hammer confirmed that the time had come.
My new course is explained in detail, but you can see my YouTube primer on Elliott Wave here. Take stock of weak sound recordings.
Price transaction THE the most important indicator as shown in the daily chart. Both are extremely stretched on the downside, only one is ready to retreat, the Catapult trade.
Add to that the evidence that this could be a significant reversal with the number of weekly waves. At least so far it has been an excellent trade.
As always, the markets will capture the majority, the majority of traders.
“Never allow profits to be lost”
Will this trade work?
As mentioned above, ‘Price movement is everything and THE is the most important indicator! ‘You have to follow the price and move towards new peaks every day. If not, and vice versa, what do you do if the fracture at the bottom reaches the last lowest level. Stop trading!
This is so. Don’t wait for it to finish or think, it will come back. They rarely do. Take the first loss, it is always the smallest loss. Then go ahead and turn it into a dominant trend again.