If you’re a common reader of our articles, you’ll know that we wish to show our idea with some reside examples, so you possibly can see the idea in an actual market state of affairs.
We did three reside examples lately. We had an important earnings within the yen and pound and a loss within the euro however an excellent revenue total – Now lets have a look at one other instance.
The British Pound V US Dollar
We hit this from the brief aspect and took revenue above the center Bollinger band and costs at the moment are transferring up from this degree to check resistance.
There is one other alternative on the brief aspect that gives nice danger to reward.
Lets have a look at why.
Pull up a chart of the British Pound.
A great free service to make use of is futuresource.com.
Prices are transferring as much as take a look at the current double high and we expect this resistance will maintain.
Only an in depth above January’s excessive will change our view, we’d on this occasion have a breakout to the upside that will point out additional energy.
Watch costs into the double high and search for the bears to take management.
Keep your eye on a falling RSI into this degree and a cross with bearish divergence on the stochastic.
At current value momentum is up and for shorts to get the nod we should see momentum flip bearish.
At current each stochastic traces are pointing up.
We need to see the traces cross to the draw back close to the double high with bearish divergence, then the percentages favor a value drop.
The stochastic will increase your odds of success, because it confirms value momentum is altering and you do not have to guess ie you act on affirmation.
If you do not know tips on how to use this nice timing indicator, see our different articles.
The goal once more is simply above the middle Bollinger band.
Important!
Do not attempt to predict.
Wait for the indications to sign the bears are taking management, through the stochastic and RSI and keep in mind the bulls solely take cost above January’s highs.
This commerce has low danger good reward by promoting the prime quality that has held for a protracted time frame.
This is a straightforward swing buying and selling methodology nevertheless it works and makes use of value momentum to extend your possibilities of success.
Try swing buying and selling with this methodology and you’ll quickly be recognizing some nice excessive return low danger trades, with clearly outlined stops and targets.
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