Guide a struggling trader

Very true statement - going against the trend is known as the Monte Carlo Fallacy or Gamblers Fallacy - the Monte Carlo aspect is a long story (1913), but worth a read for learners.

Anyways happens that commercials go against the trend and therefore by default speculators do the opposite - and both succeed.

As Eur rises against Gbp commercials sell their Euros for Pounds - money is stock and as stock rises in price commercials sell.

These same Euros were purchased with Pounds when those Euros were cheaper.

Here is my EG chart - cannot remember the detail of the up arrow but would have been a Fundamental reason, likely recent UK political/economic chaos - anyways that was a ‘setup’ time to get ready to sell Euros and buy Pounds.

When eventually price reaches back down to the horiz (which goes back about 18 months) then time to take stock and figure next likely direction.

Edit: the up arrow was when some of the details of the UK mini budget were leaked - the next large up candle was the actual announcement.

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