Hello Traders, I’m Mani and I’m the writer of Trade 77 section, please follow me on twitter for further updates.
I’m going to review a live signal that called in the WET trading room last week.
This week’s article is about Sophia’s call on GBPAUD;”The trendline princess” called it in the London session.
OK, Let’s get started and have a review on it.
Here is the H4 chart:
You can see a trendline and a strong support/resistant line at the 1.6300 level with many retests before.
She waited for the price to reach that level and a confirmation to go short there.
Let’s zoom in to the hourly chart:
Here we can see three wicks that jostled 1.6300 level and showed that more strength was required for breaking that level and also price was far away from moving averages.
Next confirmation of going short was that nice short-term channel, you might ask how we can draw a channel when we haven’t got two points to draw the upper line.
I like channel trading and I’m going to start a topic in the forum and have a discussion about channels, but for this example first I drew line #2 and tried to connect as many lows as I can, in this way we can trust more on the line and then move your cursor close to the line and CTRL+Click on the line you’ve drawn so in this way you have another line with the same slope as the previous one and then move it to the swing high. Though channel trading is a great method yet you have to use it with other methods such as longer-term trendlines or support and resistant lines.
By the way, profit target for that trade was the hourly 20 day simple moving average and closed with near 90pips profit.
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