Monday, 25 April 2011

GBP/USD Analysis cont.....

Now we have our price action setup, im looking to enter long. Along with the inside bar, we are importantly with the trend and have bounces off support which adds to the bullish case

Entry - i would enter above the bull flag, so a order would be in at 16546. Normally i would enter just above the "Mother" candle which is the larger candle of the inside bars but as we have that bull flag upper trendline, ive adjusted the entry

STOP - 16460. Low of the Mother candle plus a little more allowing for spread

LIMIT - 16718. The limit has to be at least twice the amount of the stop. Risk/Reward is important as they allow your winners to be bigger than your losses. so for example you might have 3 losing trades and 1 winner but youd still be in profit due to the size of the winner

Posted by at

1 comment:

  1. Tee Man26 April 2011 at 06:13

    Order cancelled, the support didnt hold and we're below the Mother candle so the inside bars didnt work either. Will look to horizontal support areas on the daily timeframe for entries

    ReplyDelete

Subscribe to: Post Comments (Atom)