CASE STUDY OF CURRENCY DIVERGENCE
…and a MISSED OPPORTUNITY lesson for us all !
BACKGROUND: I entered LONG in GBP/CAD, and waited for
quite a while for +20 pips, which I took.
THEN there was a retracement back to baseline, so I
was very happy that I had taken those profits.
BUT, now to the missed opportunity portion.
I did not re-enter and hold on the retracement and
here’s what happened:
Above, the highlighted portion is the +20 which I
took. But I failed to re-enter on retracement and hold
and you can see that I missed up to +90 pips when
the London Session kicked in !!
Here is the Currency movement, showing that the
Lion’s share of the Pair’s movement was contributed
by a Rally in GBP when the London Session began
I’m happy that I called the original modest trade and profits,
but frustrated that I neglected to re-enter on the retracement
and hold for the long +80 pips move…
IN MY CASE, I THINK THE MISSED OPPORTUNITY IS
A LESSON LEARNED 
WHAT DOES THIS HAVE TO DO WITH NEWS EVENTS?
Well, one way to think of the London Session is that it a
Daily Event for which there are daily setups, coming
out of the Asian Session. In that loose sense, it is a
daily event which is not unlike a major News Event… Hmmm
[ANALYSIS] Can we see the setup ahead of the London
Session? Yes, it’s a “piece o cake” as follows, shown
with 36 hour Divergence, where GBP has a clear setup
hyperscalper