tradingformoney

Why I'm on the sidelines on a monthly chart

FX:EURGBP   Euro / British Pound
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On the end of June this year (2014) The EUR/GBP gave a strong tk cross on the monthly. It is hard not to notice the heavy selling in this pair on the daily along with the weekly time frames. Due to the tk cross I expect the market to continue printing lower lows and lower highs.

I expect a entry signal to happen on the monthly chart once a pull back happens, it is very hard to determine where the pull back will be since the market is beginning to trend on the monthly chart. (the pull back is being mentioned on the monthly)

If you scale down to the weekly chart, you can easily assume that the market should start to retrace sometime, but when and where are the questions that will be answered by the market sometime in the future.

The reason I find the tk cross to not be valid to take on the initial close on the candle stick that triggered the tk cross is because:
A). The entry and stop loss offered a horrible risk to reward ratio to empty some contracts at the swing low of .7750.
B) There is no valid ichimoku price wave pattern yet.

If we can get to the .7750 area and possibly retrace and the candlesticks create a ichimoku price pattern within this tk cross signal, then the market may continue its heavy selling.

As of right now ONLY on the monthly time frame I am on the sidelines of the EUR/GBP

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