I've entered a long position for the GBP/USD. Here is a breakdown of my strategy.
#1. Identify the trend. The GBP/USD has been up trending. Therefore I'm waiting for a pull back in order to enter a long position
#2. I've drawn in my support & resistance lines as noted in the chart. Since I'm following the trend, I'm waiting for price to get back to the support line in order to try and enter a long position
#3. Price made it back to the support line. Now I'm looking for some price action to occur to signal its time to go long.
A hammer candlestick was made on the 8 hour chart this morning. It's very likely when the DAILY candle is all said and done that a hammer will be present as well. I did take a long position based off the 8hr candlestick. You can see that my STOP LOSS is just below the hammer and my take profit is up near the resistance line.
#1. Identify the trend. The GBP/USD has been up trending. Therefore I'm waiting for a pull back in order to enter a long position
#2. I've drawn in my support & resistance lines as noted in the chart. Since I'm following the trend, I'm waiting for price to get back to the support line in order to try and enter a long position
#3. Price made it back to the support line. Now I'm looking for some price action to occur to signal its time to go long.
A hammer candlestick was made on the 8 hour chart this morning. It's very likely when the DAILY candle is all said and done that a hammer will be present as well. I did take a long position based off the 8hr candlestick. You can see that my STOP LOSS is just below the hammer and my take profit is up near the resistance line.