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Trading is a high risk activity, protect your capital through the use of stop loss, making intelligent use of leverage and not investing more than you are willing to lose. The author of the post declines any responsibility for any losses incurred as a result of decisions made after reading this article. The information contained below is for informational purposes only. CFDs are complex instruments, therefore adequate knowledge is required before making any investment. Thank you for your kind attention!
What a Day For The British Pound…
The British Pound with CHF is the largest trade of the day in today’s Forex market, with a 60-pip trend on the five-minute time frame. But, before we get into trade and price action analysis, let’s talk about some other aspects of Forex trading. Everyone, welcome back to another video in which I will analyze trades that occurred on the Forex Trendy, an online software. If you want to use Forex Trendy, the link is provided in the description below.
I’ll be concentrating on the five-minute time frame for today’s analysis. The USD and SAC falling wedge buy signal, which broke at 10:15:7, is the first trade of the day. When analyzing price action, one important factor to consider is the lower low. If the price is making a lower low and there isn’t enough momentum to move higher, it’s best to be cautious and wait for more confirmation before entering the trade.
We saw a slight upward movement after the breakout, followed by a full distortion and a downward trend. When the price is testing new lows, it is important to be cautious, as waiting for confirmation of momentum in your desired direction is recommended before entering a trade. Keep in mind that this is personal advice, not financial advice.
Let us now turn our attention to the USD. With a nice bearish engulfing pattern and the formation of a triangle, this signal appears to be quite reliable. Although the first breakout did not result in significant gains, as the price retraced to test a critical level around 1915-1920, it eventually fell to 94.82, resulting in a profit of approximately 20 pips. To maximize your gains, consider using a trailing stop depending on your trading rules and profit targets.
When we turn our attention to the British Pound, we see a triangle buy signal at 1593. The price action is quite positive, with strong bullish candles and multiple tests of the 1575 level. Following a significant green candle, the price continued to rise, reaching 1660, resulting in a profit of approximately 60 pips. When trading on the Forex market, patience is essential because it allows you to capitalize on advantageous opportunities.
If you want to stand out from the crowd, it’s best to follow trends, especially during choppy market conditions when the market direction is unclear. Trend following is a wise trading strategy. One such trend signal is the market’s calm behavior, which is characterized by small candles and a pause in activity. Consider the duration of such patterns, as they can provide high-quality signals.
Let’s look at oil before moving on to the next trade. When trading the Forex market, the size of the candles is an important factor to consider. Setting stop losses with large candles can be difficult. In the case of oil, however, the candles are small, which is a good sign. The price action suggests a downward trend, with the first bearish candle resulting in a retracement around 96.50, a psychologically significant level. The market then took its time forming a triangle, and the subsequent breakout was solid, as evidenced by a large red candle. The price continued to fall, reaching 95.50 before dropping further to 91.56, presenting a profitable trading opportunity.
In trading, price action is everything. Ignore those who argue that price action is ineffective and that traders lose money. Now let us look at the Australian Dollar and the Japanese Yen. Not every trade is perfect, and this pair appears to be moving in a channel. Trading such a chart requires caution because you are in the channel. However, with the proper knowledge and understanding, you can still benefit from.
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