Hello, I am a new trader and I just started using the actual charts. So I have been looking at the EURGBP chart with my basic skills and I found something interesting:
There has been a very long downtrend which is currently broken.
This leads to the question where is the re-test ?
Any of the two squares could have been the retest or it would be still to come. I think this could be decided by looking at the next chart.
In the last 3 days there has been a new trendline which has been tested a couple of times now. In my opinion if this shows to be another test and the price keeps going up without breaking it, this would mean that on the bigger scale chart, the price will never go back for another retest and will continue to go up.
This would mean a long trade.
I know that it is Friday so how would this affect my trade. This idea involves waiting for a couple of more periods before taking the trade.
I am an absolute newbie so I am accepting all kinds of critique including chart setting, process of finding a trade and the actual trade idea.