GBPUSD - EVERYTHING IS LINED UP FOR A REVERSAL! - SHORT
Well here's one of those trades that has all the things we look for all lined up.
1. Strong downtrend with a pullback to (2) key resistance levels: 100-MA & .618 Fib Line.
2. We saw price break through the 50-MA and pinball off the 100-MA on the last major move.
3. Stochastic (which i use a a 'cycle indicator' is showing price is at the "peak" of a cycle and ready to retrace.
4. MACD (which I use for a momentum indicator) is at a new relative high, indicating a possible retrace.
I will look for %K (black line) on Stock to make a turn DOWN and enter SHORT on that hook.
I will assume that on the downturn of that indicator we will have reached a wave/cycle high.
I will enter 1 pip below the close of the candle that caused the %K to hook down. This downturn will indicate
resistance has held on those 2 key levels and MACD should be paiting lower bars headed down towards the mid-line.
My only concern with this setup is..... we are in a very extended downtrend. With as many cycles/waves that have been trending downward it's about time for a change. Hopefully we can get one more cycle down. Let's wait and see.
1. Strong downtrend with a pullback to (2) key resistance levels: 100-MA & .618 Fib Line.
2. We saw price break through the 50-MA and pinball off the 100-MA on the last major move.
3. Stochastic (which i use a a 'cycle indicator' is showing price is at the "peak" of a cycle and ready to retrace.
4. MACD (which I use for a momentum indicator) is at a new relative high, indicating a possible retrace.
I will look for %K (black line) on Stock to make a turn DOWN and enter SHORT on that hook.
I will assume that on the downturn of that indicator we will have reached a wave/cycle high.
I will enter 1 pip below the close of the candle that caused the %K to hook down. This downturn will indicate
resistance has held on those 2 key levels and MACD should be paiting lower bars headed down towards the mid-line.
My only concern with this setup is..... we are in a very extended downtrend. With as many cycles/waves that have been trending downward it's about time for a change. Hopefully we can get one more cycle down. Let's wait and see.