Very good!
Sorry you guys had to wait for me. I’m not here at night.
You had a good idea to place a buy stop above the consolidation, just in case the price continued down, which it did. When the price goes sideways like this, we are forced to move the trendline over, if the price continues down from there. Keep your trendline where you now have it. Since price is going into no-man’s-land, it could reverse.
This strategy is proving a bit challenging because the market conditions for this pair have apparently changed after being the same for years. It seems to be consolidating a lot, which it used to never do at all. It still respects trendlines, once the price has travelled a ways, 300-500 pips. The NZD is still generally at a peak against other currencies, and the GBP is at a significant low against other currencies. I believe these are both consolidating against their respective “limits”. (there are no real limits). So, even if they break out even further away from the “mean”, they will eventually reverse back, and a significant move will come with it.
I think Pipcompounder answered this already, but I’ll throw in my thoughts. I’m new at this and still figuring out the best way to do it. Moving the trend line because of sideways movment seems okay in my opinion. Since the market wasn’t moving up or down you still need to wait for the signal to buy or sell. So, since I’m waiting for a buy signal, I moved the trendline over because it’s still going down.
You can see in mine that I’m not exactly following the fractals.
Trade hit my TP and gained me +300 pips. Though it is not advisable to exit with a TP before having an opposite side breakout, I took this 300 pips as this win compensated my previous 5 losses.
Price is still going down. I hope the price may further go down, if UK retails print below 0.0% and may break the trend line towards up on a better figure above 0.9%. Waiting on sidelines for the release of UK retail sales data which is due in few hours.
I probably will wait until Monday simply because a lot of things can happen between now and then. I’d like to see another 4 hr candle close above the trend line.
