GBP_USD.docx (760.8 KB)
Hi all, i would be grateful on your thought process with this example. Im starting to understand the theory but struggling with putting it into action.
Attached are some charts for GBP/USD.
Having looked at the 1 week and 1 day chart i see an uptrend starting to form hence i’m thinking of going long. I’ve then gone to the 30min and 15min chart to get an idea of when to enter a position but then end up thinking it might be best to stay away for now as i look to have missed the uptrend and should now look for a reversal on the shorter timeframe?
Would you enter a position? if so based on what and how would you calculate your entry position, stop loss and profit level?
The price is still rising on the daily timeframe but it is at a resistance level. The best time to enter would have been when the daily candle crossed the 200 MA and stabilized above it. This was a few days ago so you are correct in being late. On the H4 timeframe the 8MA trendline is bending but if it doesnt cross the 20 MA and continues its uptrend we could see a continuation. More economic reports are due soon so I would be careful when trading because the market will get choppy. Intraday trading might be best if you have missed an opportunity on a high timeframe such as D1 and W1. If I were to enter a position I would enter on a bullish candle when it begins at or close to the fast MA line (8) as long as the fast MA is above the slow MA. They say the trend is your friend until it bends so I would have to ensure that there is an upward slope as well.
this is a nice reply with exact information , got some fine lines also. thanks Mate for nice post.
