It seemed like it would be a really good time to trade. Clear movements, corrections to important levels that were respected, and good signals from Price Action. It turned out, however, that many of them were false, which I will describe below. Of course, that does not mean that there were no correct signals, but there were much fewer than I could have expected:
EUR/JPY:
I wrote in one of my Price Action reviews that there may be an Inside or Outside Bar formation on this pair. The signal is far from ideal, because Outside Bar is not completed, but I often say that such non-ideal signals are worth playing because the market is not perfect. Therefore, I set the buy limit order for 50% of the candle that I thought was a signal one and today the position was opened. Stop Loss is about 50 pips, and Take Profit is below the resistance ca 200 pips from the price.
GBP/AUD:
It’s one of the pairs which completely ceased to be technical. Pushed the price up, then the correction that I saw as an opportunity to buy. However, after that there was a big drop that broke through the support and now it is not really possible to determine the direction. Need to wait and take care of other pairs.
GBP/CHF:
Here it is even clearer. Very visible resistance level, broken, and then a long bearish candle breaking the previous resistance (which should provide support) and the breakout was negated. It seems that there should be further declines, so if while the test of the level appears a sell signal I will open short.
NZD/JPY:
Here’s another stop loss. The pair broke out, than there was a bullish correction and a sell signal. Unfortunately, as you can see, this level has ceased to be respected and now the price is above previous support.
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NZD/USD:
Another pair with the New Zealand dollar, here I opened a long position. The pair rebounded from support, a buy signal appeared in the form of a long bullish candle. Later 2 pin bars tested 50% of its correction which further strengthened the signal. Currently the position brings 70 pips profit at Stop Loss around 30. Take Profit is far away, another 270 pips.
