This is as of Oct,07-2009. The trend line(support line) is broken in the day chart around a week ago. It looks like now it is retracing back to the trend line and then fall again. Once it retraces back to the trend line and then starts falling I will enter the trade. I will also look for any candle stick formations.
It may not retrace back also. If it suddenly falls from the point shown in the figure, I will enter the trade. What do you guys say? Do you think this trade will work out?
GBPUSD support line was broken a week ago and looks like it is now retracing back to the trend line.
After 2 weeks of the trend line break out of GBPUSD the currency pair retraced back and formed another small trend line. Last friday, Oct. 9th, 2009, this second trend line also broken. Moreover it formed a bearish engulfing candlestick formation on the alligator. So I am thinking that the graph will go down forming a good downtrend. Check my article on my blog about alligator and candlestick technique at http://www.forexbees.com/forex-blogs/alligator-and-candlesticks-forex-techniques
This will explain you about a technique that I follow using candlestick formations and alligator. This is working very good for me. Not only this technique has formed today for GBPUSD but there is also a second trend line break out. So I am strongly believing that it will form a downtrend. So Today is the best day for me to enter a sell trade for this currency pair but after entering the trade I have to wait for, may be around 2 weeks or more since it is a daily chart. So it won’t be a day trade but it will be a long term trade.
Moreover I won’t enter the trade immediately this afternoon in california time. But I will wait until the London market starts and then I enter the trade. I will use the stop loss mentioned in the article above. I may also use the hourly chart and another indicator like an oscillator for entering the trade. Check the following figure about the second trend line break out and bearish engulfing candlestick formation.
The following is an enlarged picture of what is happening in this currency pair. Check this. There were actually two possibilities for this. One was the first trend line break out. When the first trend line, broke enter immediately and use a stop loss above the break out candlestick. The second is now. Now I will use the stop loss as mentioned in the alligator candlestick formations post.
I am thinking the line in the following picture will be the first resistance for the trend that has formed after the GBPUSD trend line break out on last friday. It is around 700 pips. It may take long time. What do you guys say?
This trade is failed. Eventhough the trend line is broken very nicely the trade is failed. It retraced back above the trend line. I though it will retrace back to the trand line and come down again but it did not. It crossed the trend line and went up.
stunning forum, i wish i found it earlier…