This GBPUSD setup is very similar to this EURUSD setup. Although the LH broke the 2 leg pull back swing low, it was still valid. I think the key is that all 2 leg pull backs and LH must only last for a max of 1 bar (just like the EURUSD setup)
Even though the HL broke the 2 leg pull back’s high, it is still valid. See this EURUSD trade. However, I would be reluctant to take this trade because of the VWAP lines all forming prior resistance.
I almost went long after seeing the initial 2 leg pull back + HL However, luckily I spotted that on the 3rd HL (it is actually a 2 legged pull back which means that the 3rd HL has not formed yet, and I should not take the trade) Still went higher in the end… I’ve… Read More »
Sometimes it takes the hard way to learn some discipline. I’ve learnt to stick to 2 legs pull back + Higher low/ lower high. In fact, the most important is element of a 2 leg pull back is the 3rd higher low Even price tested the two 20 and 55 EMAs in close proximity and… Read More »
Why was this GBPUSD trade successful compared to my AUDUSD trade today? 1. 2 leg pull back + lower high Why did this GBPUSD trade move so strongly to daily S2, when my GBPUSD trade here on 22 Nov 2013, didn’t come close to TP at daily R1? 1. I realised it is the VWAP confluence… Read More »