Here on the Pound/ Dollar (GBP/USD) we have a bearish deep gartley. this just means that the completion of the ABCD pattern that makes up the ABCD leg of the overall XABCD pattern completes past the 786. The pattern completed with the RSI being in the Extreme it came down past the mid line of the oscillator and back to the extreme. it also created a little bearish divergence with the highest peak of the pattern not breaking the extreme part of the RSI. But, the move leading up to the Peak did break the Extreme. so what i am waiting on for price to make a definitive move down. about where the green and white parts meet on the short position drawing. it would be nice for the current candle to close as an engulfing candle then we will enter. PA has been consolidating for a bit now and if the Euro is moving down then the pound SHOULD be shortly behind. in my years of trading I have found that for the MAJORITY of the time the Euro acts as a leading indicator to the pound/ dollar. this is not always true, but it happens quite a bit. I will be acting a bit aggressively on this trade as the pound pairs are notorious for making huge moves rather quickly. i do not know if i will be able to let you guy know when i enter. but i do expect to enter sometime today and probably before noon CST. I wanna see what the Hourly is going to show. Happy Trading and #riskfreeorbust!
Comment:
pardon the grammar mistakes i have the worst habit of capitalizing random words in the sentence.
Comment:
I am thinking that if the RSI exits the extreme area on this candle I will enter. I ill be placing stops above the previous swing high... i will try to update the trade management portion of this!
I am thinking that if the RSI exits the extreme area on this candle I will enter. I ill be placing stops above the previous swing high... i will try to update the trade management portion of this!
Trade closed manually:
So I entered the trade on the 1H off an RSI exit of the extreme zone. I made a small profit but closed my trade as soon as price closed above my trade management trend line. with this pattern being on the daily as well I am expecting a Stop Hunt to throw the RSI into the extreme on the Daily. This will also break the consolidation that GBP/USD is in at the moment. the ellipse is where i think will be to throw the RSI into the extreme zone.
So I entered the trade on the 1H off an RSI exit of the extreme zone. I made a small profit but closed my trade as soon as price closed above my trade management trend line. with this pattern being on the daily as well I am expecting a Stop Hunt to throw the RSI into the extreme on the Daily. This will also break the consolidation that GBP/USD is in at the moment. the ellipse is where i think will be to throw the RSI into the extreme zone.
Comment:
also the red line is where we want to see price break, retest and then fall for the entry on this trade. that breaks the consolidation on the downside if the stop hunt does not happen.