The charts illustrate well I think what we were trying to do here.
Just one final point. The centre line boll is still tracking down and is likely in the interim to take PA with it. When the center line boll reduces its angle a little more PA may well break through and up but still expect this to be a while yet. Plus bolls are closing indicating not much of a big trade.
However, if bolls continue to tighten and maās start to line up. Look for a significant break out. (all of the above on the 15m chart).
That parabolic drop in GU pair this european morning was caused by āverbalā BoE intervention. Mervyn King stated in a newspaer interview that a lower ļæ½ would be āhelpfulā. Soon after that remark the GU plunged.
Probably because they just bought a load of dollars yesterday
Everyone, Iām going to buy the $. It would be helpful if the ļæ½ went lower.
Oh what do you knowā¦Iāve just made myself 200pips. Lol.
As cas says, itās a big move, almost 400pips since yesterday. If it keeps going down, Iād say maybe the 1.59 level (fib extension )but thereās no guarantee that this move wont just spike out a load of stops and then move back up to continue in this range that the GU has been in since May. As you can see, itās having a bit of trouble getting past this point, there is more support at 1.6, which is also a big pyschological number.
Iām guessing weve all made a bucket load of pips today on that last down. Iāve closed out now because of possible support on the 1hā¦ however brief.
Might even try a long, I think I can risk 20 pips today. Plus were way outside the 4h bolls!!!
Unsurprisingly, I missed out on this one. But Iād charted the lower resistance of an upward trend on the Euro which seemed to begin at the start of September.
What do you think of buying in here (1.4690) at a small lot size with a 100 pip SL, and holding the trade intraday (positional?) for a few days/weeks to eventually get 200-300 pips?
I know this is somewhat off-topic and I promise not to derail, but I saw that you were discussing this event today and it made me think of doing this.
Theory is good. But pa doesnāt stay in a channel forever. Plus it looks to me that its not through testing support yet. The 1h chart is good for this i.e. price will step outside the bollinger lower or upper band wick partial retrace towards center boll and retest the outer boll band again. Look back on your chart and see when price has stepped outside of the boll. Almost every time it retests. Personally Iād wait for a second candle test of the lower boll and preferably a wick then a change of colour candle. Then go long.
Iād certainly wait for a change of candle colour.
Yeah, before you replied Iād already canceled the trade, that mid BB is still downward and the outers looked like they were trumpeting. I wanted to be sure this verbal announcement didnāt trash the currency even more before bottoming out.
What I am looking at is a long-term trend of all currencies moving up against the USD - eventually. But you are correct, I will be waiting and watching the 1H for a candlestick pattern indicating a return to upward movement.
I also learned another thing today for the millionth time.
when waiting for a set-up to complete you not only wait you have to pay attention and not answer E-Mails and play with the Dog or listen to the wife.
This is Why.
