18 March 2008

GBP/USD @ 2.0044 BUY Failed because pattern

Hello friends,

I expected things to happen after 6-7AM GMT and at 8.00AM GMT GBP/USD made a move.

In the following lines I will explain how some candle patterns help us to stay away from getting fried.

First here is the chart of the movement:

At 7.00AM GMT a signal was created and entry was almost perfect at that time. 2 EMAs crossed, MACD was up, price broke the RegChan, W%R retraced...but too much. And more, the price formed a candle pattern that is well known as a Graveyard Stone and it means there is a possibility for the price to reverse (but at this stage it can't reverse too much) so this is the best time to wait for W%R to cross RSI again UP but bellow -20.

If you were to wait a little you would save 10 pips (from stop loss) and catch a better smoother move. I rather prefer to pay attention to this kind of stuff than to be stressed because price went against me. I don't even think the price breaks my rules as long as I respect them

I places "Check" symbols where you had the chance to enter again without problems and take 10 pips for sure.

So, I think this lesson teach many people that patterns can be taken into consideration in many different situations, time frames or pairs.

See you tomorrow !

No comments: