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EURUSD Daily
Supports at : 1.08200 & 1.08000
Resistances at : 1.08450/500 , 1.08700 & 1.08900
The angle is right, Pattern very Bullish – two options :
It hits straight to Resistance at 1.08900 – in that case probability is it will Fail to break
It takes a breather and few days of consolidation – in that case we go through the resistance and about another 200 pips up from these levels, just to meet the Major Resistance line at 1.11
Yes Robinson it was 😀 Now go back to my chart below – the resistance trend line that was cloned ( so hypothetical trend line that I placed on previous Uptick without any other reason except that it follows the angle that repeats itself ) had obviously tons of stop losses just above it .
Broke it and opened a new bar just above it –Buy ( 1.15038 – Stop at 1.14980 -5-6 pips – we’ll talk about Risk Management later in the game)
Now look at my chart with drawn Channels ( yes I am going to be obnoxious with these channels till you all accept it and start drawing them ) – there is a clear picture in front of us.
Obviously it will try to reach for the top of that channel – possible consolidation prior to it )
And to conclude the lesson : these trend lines of mine are working every single time – practice drawing them !
To be able to survive in this game you cannot rely on your gut feeling or opinion, but on full strategy and what you see in charts.
Channels
Now when we know how to draw trend lines, let’s go further and create a good playing field.
To get that field, we have to make parallel lines to our original trend line ( with a perfect angle inherited from proven past performance )
Place them as shown in the first picture ( as many good places you find to place them, better)
Extend them further in the future. (pic2)
We made ourselves a Playing Field – Channels that will give you idea where you should enter the position, where to place your stops, where the market is really moving and what can you expect to follow.
So as you can see looking at pictures from 1 to 3 , if you have drawn chart using my approach on 26th June, you would be able to properly follow the market and profit out of it till today, and if you did make some mistakes, using proper Stop Losses you would prevent your account to be wiped out.
Channels are always there ! It is your job to find them and apply them to the chart.
In the future I will show you some prime examples of channels that were working about 35 years ago, and they are still working perfectly ( lots of my trend lines are actually older than most of you 🙂
We didn’t make these roads – we are just maintaining them 😀
GBPJPY DAILY CHART – ALL GREEN CANDLES
Look at this Chart as it speaks for itself.
As I have noted, when two currencies move in oppoitte directions like today (GBP up, JPY down), there is real money driving the moves.
Closest support is just below 205.
This also makes it difficult for the BoJ to intervene as it is more than just a USDJPY move.
GBPUSD DAILY CHART – EMBRACE THE RETRACE
The reality of trading is that trends often need a retracement, even a minot one before it can make a run at a new high (or low).
This seems to have been the case with GBPUSD, which still needs to Get through 1.2846 to challenege the key target at 1.2860.
Note EURUSD lag as EURGBP retreats further from .8460 tested yesterday (last .8428).
The GBPCHF I posted during the day was an amazing movement</p>