On January 13 2023 the GBPUSD pair was showing clear bullish patterns for another move higher on the short term smaller time frame. Any trades based on smaller time frames should always be “in and out” trades, meaning when targets hit close the trade no matter if price extends for more gains.
Confluence trading is a combination of two or more trading strategies/techniques that come together and form a high probability buy/sell zone in a certain area in the market. Market patterns (Elliott Waves, Harmonic, Head and Shoulders etc.), price action analysis (Support & Resistance, Supply & Demand Zones, Candlestick analysis etc.) and indicators (RSI, Moving Average, Stochastic etc.) are technical strategies/techniques used when trading a confluence setup. The charts below show a confluence trade setup that signals a trader on which side to take the trade.
BUY Trade Setup
1. Structure is in a higher high / higher low sequence from the January 6 2023 low signalling upside momentum.
2. Bullish harmonic pattern triggered buys at the XA 1.618% (Red)
3. Harmonic pattern (Red) point D terminates in the demand zone (Green box) signalling possible bounce higher off the zone.
4. Stochastic indicator is in oversold levels signalling possible reversal higher.
GBPUSD 5 Minute Chart January 13 2023
BUY trade entered at 1.2178 with Stop Loss at 1.2158 and on January 13 2023 GBPUSD moves higher to the proposed maximum target at 1.2238 for a +60 pip move and a 1:3 Risk/Reward winning 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. 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
At Elliottwave-Forecast we cover 78 instruments (Forex, Commodities, Indices, Cryptos, Stocks and ETFs) in 4 different time frames and we offer 5 Live Session Webinars everyday. We do Daily Technical Videos, Elliott Wave Trade Setup Videos and we have a 24 Hour Chat Room. Our clients are always in the loop for the next market move.
Try Elliottwave-Forecast for 14 days !!! Just click here –> 14 day trial
Back
