GBPAUD - Sell Daily Triangle Break - Trend Continuation
Updated
Hi Traders!
The market is in an overall Downtrend.
Let's begin the Multiple Timeframe Analysis with the Weekly.
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Before we start analysing this pair, here is an important lesson for everyone who's reading that:
You probably often heard or read in trading lessons, that you shouldn't draw many things into your charts.
But the truth is, that many of them don't even really know why. They just say "so you don't become confused".
Why is it so important? It's probably more than you think.
----------
Here is the screenshot:
Why did we share the information above? Because of that example we give you now.
As you can see we only drawed one Trendline into the entire chart.
This is enough to get us an idea of the current market situation.
The market broke out of the Trendline downwards.
Then it retested it and it is continuing further.
Conclusion: We're only intrested in taking Sell-Trades.
Moving on to the Daily.
Here is the screenshot:
This is the zoomed up situation of the Breakout.
Here we can see the daily Triangle.
Moving on to the H4:
Nothing new at all.
We only established the Target area, which is the tourquise dotted horizontal ray.
In addition this is ray the 78.6% Fibonacci Retracement.
Lastly, the Entry Timeframe:
We here see a Wedge Pattern.
We're waiting for the Break of the Daily Triangle and the Retest at the upper Trendline of the Wedge before we enter the market.
The SL is a decent distance away from the recent high.
The risk-to-reward ratio is better than 1 to 3.
We recommend to trade the Breakout with a strong Retest.
Thanks and successful Trading :)!
The market is in an overall Downtrend.
Let's begin the Multiple Timeframe Analysis with the Weekly.
----------
Before we start analysing this pair, here is an important lesson for everyone who's reading that:
You probably often heard or read in trading lessons, that you shouldn't draw many things into your charts.
But the truth is, that many of them don't even really know why. They just say "so you don't become confused".
Why is it so important? It's probably more than you think.
- "so you don't get confused" - this argument is valid, but not everything
- You focus on the main thing and you don't get unsure because of tiny barriers
- If the trade goes negative, you calm down, because you see the reasons you traded
- If the trade goes positive, you don't get scared, because you know how to exit
- If you go through your Journal, you instantly understand the reasons why you traded, that can help you identify the Winners and the Losers and its Setups
- It gives you the skill of keeping everything uncomplicated
- You can share your charts easily, without explaining :)
----------
Here is the screenshot:
Why did we share the information above? Because of that example we give you now.
As you can see we only drawed one Trendline into the entire chart.
This is enough to get us an idea of the current market situation.
The market broke out of the Trendline downwards.
Then it retested it and it is continuing further.
Conclusion: We're only intrested in taking Sell-Trades.
Moving on to the Daily.
Here is the screenshot:
This is the zoomed up situation of the Breakout.
Here we can see the daily Triangle.
Moving on to the H4:
Nothing new at all.
We only established the Target area, which is the tourquise dotted horizontal ray.
In addition this is ray the 78.6% Fibonacci Retracement.
Lastly, the Entry Timeframe:
We here see a Wedge Pattern.
We're waiting for the Break of the Daily Triangle and the Retest at the upper Trendline of the Wedge before we enter the market.
The SL is a decent distance away from the recent high.
The risk-to-reward ratio is better than 1 to 3.
We recommend to trade the Breakout with a strong Retest.
Thanks and successful Trading :)!
Note
Here is the RED BOX for you:
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