GBP/USD Trading

I have a question. Anybody using the daily chart on this pair? I am not quite clear the main diff between trading the daily chart vs. hourly chart. I understand the noise level and head fakes once you get into smaller time frames. If I employ a 20-pip stop loss on the hourly chart, could I use thesame on a daily chart? Is it true that the higher time frame, the wider the stop loss? :confused:

The higher the timeframe you go, the wider your stops should be. You can use a higher timeframe to see what the overall trend is and then drop down to a shorter timeframe to actually trade.

Also consider what pair you are trading when deciding your stop losses. The Cable is known to have plenty of spikes while the EUR/USD has more fluid movement. So when trading the Cable you should consider this when deciding on a stop loss.

I have been stopped out twice in a row :mad: I get stopped then the price goes to the direction of my trade.

What are you guys using as an effective stop loss in pips trading this pair? Using 1Hour Chart.

Ramrocket, could you give us more detail information of your trade? what is the trend like? volatility? better yet, give us the screenshot of chart you are talking about.

As a rule of thumb though, i usually use pivot points and R1/S1 on calm days w/ sideways trading.

oh ya… i’m noob… so dont take my words for it. i just like to learn together.

I am not sure how to use pivot point. If R1 or S1 arent any closer to my entry point, I resort to 25-30 pips stop loss.

I love trading this pair but I have the same problem all the time. I trail the stop too close and it knocks me out. I have started putting my stop further away beyond important fibo or daily s/r levels and it has been working better for me. Unfortunately that means a smaller risk/reward since the stops are further out. I love this never ending learning curve :slight_smile:

I walk up this am and realized I’ve missed the long signal @ 1.9491:mad: I sleep through a big sonami move! I bet alot of you guys made money today.

you don’t use entry orders Ramrocket?

No, I am not experienced enough to use entry orders. I rely on my system alarm to give me an alert signal. I still like to see the parameters of the trade before entry.

open short @ 1.9516 +132 pips so far. Cable broke support @ 1.9432. My bias is still going down.

I decided to lock in guaranteed profits of 86 pips and now just wait what happens after the news release.

I will post my chart here later.

Here is my chart. Came home today from work and checked this trade. It went from 132 PIPS to 214 PIPS.
(sorry locked in arrow is the price b4 US session. Locked in pips at stop loss arrow)


Nice trade!

Be careful now though. Look at all your oscillators, they all show bullish divergence.

Price has made lower lows, while the oscillators are slowly rising creating higher lows.

Good early warning signal of trend exhaustion.

thanks piprosterous.

My hunch is that the price will consilidate around .9298 area and will still drop towards next support level around .9176. All 4 EMAs looks groovy and healthy, rsi ok, stocs still ok and adx indicating strong trend. Will see if my next move is correct sunday.

I am repositioning my stop 40 pips away @ .9398 and locking in profits of 178 pips. I’m riding this baby all the way. :slight_smile:

I closed this trade this am with a profit of 202 pips. Will wait for re-entry.

Nice job. Keep up the good work analysing this pair.

Great trade ram! Feels good doesn’t it? :slight_smile:

Just remember to stay focused now. The past is the past, and you must keep looking forward.

Happy trading!

Thanks Topgun & BigPippin. It sure feels good to win a trade. :slight_smile:

Your skill allowed you to make that successful trade :). I don’t like the word [B]"[U]win[/U]"[/B] because it sounds too much like gambling which we do not do in FX.

Good trading Ram,

I like your style.

Very clean, very disciplined and with obvious results, do update more!

Regards,
E. Lang

Great short opportunity on both gbp/usd and eur/usd:

short on gbp/usd @ 1.9387 with +28 pips so far
short on eur/usd @ 1.2996 with +34 pips so far

I am counting on the eur/usd pair to break support @ .2972
same thing with gbp/usd to break .9345

eur/usd is showing stronger trend strength. gbp will follow.

these look like great trades so far. will see.

Update:

Wasn’t long enough to be on this trade. gbp wasn’t able to break support @ .9345 while eur did but went back up. As soon as Emas confirmed reversal supported by psar, I closed these trades with 15 pips gain. 1h now showing gbp in trading range. waiting for the next opportunity. I will maintain short bias on these pairs.