On January 22 2024 I posted live on social media, @AidanFX , the trade setup. ” Sold GBPUSD at 1.2714 Stop Loss at 1.2726 Target 1.2690 ”
SELL Trade Setup
1. Price respects and reverses lower from the 1 hour fair value gap/FVG. (Red)
2. Price forms a bearish RSI divergence pattern in the 1 hour FVG. (Gray line)
3. Price breaks below the previous lower high signalling a bearish reversal/change of character. (Black Line/CHoCH/Change of Character)
4. Accumulation, manipulation, distribution bullish pattern formed adding more confirmation and confidence to the trade. (Blue, yellow, green boxes)
5. Sell trade was triggered and looking for move lower towards the Asia low liquidity level.
GBPUSD 5 Minute Chart January 22 2024
2:20 AM sell trade entered at 1.2714 with a 12 pip Stop Loss at 1.2726. GBPUSD moves lower to the proposed 1:2 Risk/Reward target (1.2690) where the trade was closed for +24 pips. (+2% gain risking 1% on every trade)
A trader should always have multiple strategies all lined up before entering a trade. Never trade off one simple strategy. When multiple strategies all line up it allows a trader to see a clearer trade setup. If you followed me on social media you too could have caught the GBPUSD move lower. We at EWF never say we are always right. No market service provider can forecast markets with 100% accuracy. Only thing we at EWF 100%, is that we are RIGHT more than we are WRONG.
Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade. Hope you enjoyed this article and follow me on social media for updates and questions> @AidanFX
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