Wednesday, April 20, 2011
gbp/usd hiden truth in engulfing candle
gbp/usd hiden truth 1
For the past six years i have dedicated time to study gbp/usd at the expense of my social life, because i really want to know what really affect the forex market technically and i realize i can nt just examine all currency pairs but rather concentrate my effort on one (gpb/usd). it paid off late last year 2010 to be precise.
It was heartbreaking losing money on a nice trade especially in the absence of news,you start asking your why this sudden reversal, you quickly run to forexfactory.com to check for any economic news, you feel your heart beat racing at 120km/h, soon your heart beat subsides after taking a cold bottle bear, after the crashed of your account. what comes to our mind is ,like we are wasting time, money and that you can nt meet up with the payment of your bills if you keep gambling, u begin to see forex as gambling, " you win little, you loss much.
You wonder if this market can be understood, at list for once, this is what i want to show you, understanding gpb/usd when you are a daily trader.
I have observe that you approach forex market the way it present it self daily (for intraday traders),and that your strategy is not applicable all the time.because ranging market has its own approach as well as trending market.
What i am about to share with you, its paramount you prove it by observing and taking notes. because it will give you understanding of gbp/usd and increase your confidence.
Pivot points as fundamental as it sound, it affect the movement of the currency, i will give you example of a buy and sell market and allow you to observe the rest for your self .
THE STRATEGY
go to mataf.net to check for pivot point, its already calculated so that you do not have to stress your self of getting the low, high and close to get the pv.
BUY MARKET 100PIPS TO 180PIPS IN UP DIRECTION
when the pivot point value is (example ) 1.6281-88, i mean to 1.6288
the market uses this point as a support to r2 or above, provided there is no down trend or an engulfing candle in daily chart that can lead to down trend . this works well in a ranging market.
SELL MARKET 100PIPS TO 150PIPS IN DOWN DIRECTION
when the pivot point is 1.6272-78
the market move up a little to any Fibonacci resistances if there is any, in most cases it does not locate any resistance, it move down below the low it has previously made, it is preferable too place your sell stop at the low it has previously made, and watch it go down to s2 or below, in most cases it locate a Fibonacci area. it uses the point as it support for the day or you can use s2 as ur take profit.
i advice you observe it and how other pv affect the movement of the market. WATCH OUT FOR PART 2
It was heartbreaking losing money on a nice trade especially in the absence of news,you start asking your why this sudden reversal, you quickly run to forexfactory.com to check for any economic news, you feel your heart beat racing at 120km/h, soon your heart beat subsides after taking a cold bottle bear, after the crashed of your account. what comes to our mind is ,like we are wasting time, money and that you can nt meet up with the payment of your bills if you keep gambling, u begin to see forex as gambling, " you win little, you loss much.
You wonder if this market can be understood, at list for once, this is what i want to show you, understanding gpb/usd when you are a daily trader.
I have observe that you approach forex market the way it present it self daily (for intraday traders),and that your strategy is not applicable all the time.because ranging market has its own approach as well as trending market.
What i am about to share with you, its paramount you prove it by observing and taking notes. because it will give you understanding of gbp/usd and increase your confidence.
Pivot points as fundamental as it sound, it affect the movement of the currency, i will give you example of a buy and sell market and allow you to observe the rest for your self .
THE STRATEGY
go to mataf.net to check for pivot point, its already calculated so that you do not have to stress your self of getting the low, high and close to get the pv.
BUY MARKET 100PIPS TO 180PIPS IN UP DIRECTION
when the pivot point value is (example ) 1.6281-88, i mean to 1.6288
the market uses this point as a support to r2 or above, provided there is no down trend or an engulfing candle in daily chart that can lead to down trend . this works well in a ranging market.
SELL MARKET 100PIPS TO 150PIPS IN DOWN DIRECTION
when the pivot point is 1.6272-78
the market move up a little to any Fibonacci resistances if there is any, in most cases it does not locate any resistance, it move down below the low it has previously made, it is preferable too place your sell stop at the low it has previously made, and watch it go down to s2 or below, in most cases it locate a Fibonacci area. it uses the point as it support for the day or you can use s2 as ur take profit.
i advice you observe it and how other pv affect the movement of the market. WATCH OUT FOR PART 2
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