Short

Updated

GBP / USD - Sell traps for Cable - SHORT

Over the next few day's we have various reports coming out for this pair, and we have the Brexit negotiations going on which, will almost certainly have a negative impact on Sterling. Interestingly, both economies are performing well when viewed through the prism of reporting metrics but compared with the US$, Sterling is still going to be the underdog, but while the DXY is moving sideways gathering strength to break 94, the Pound may pull ahead for a short while, falling into our sell traps, unless of course Tues 5th US PMI's come up strong, in which case we could be going straight to the Profit zone.

We're currently rising on the weekly trend line and we have two sell traps above to be a Bear on this pair. The first and I think primary sell zone is just above 1.35 and below the 200 days EMA and a previous Point of Control, there will be a great deal of resistance at this zone unless various metrics are sufficient to blast straight through to sell zone number two, between 1.36 - 1.37.

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It's easy to see why we could be bullish on Cable short term when looking at the weekly chart, it's important to review the bigger picture before taking any trade, this is where the market movers and shakers trade from.

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We're progressing nicely towards 1.35 and our bear traps

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I'm now looking to go short on this pair, we're nearing the sell zone and you can see the reaction from the Bulls, taking profits before the zone, a little push up and I'm selling.

Trade active

Selling now with stop above the daily PinBar

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Things are hotting up as various pairs approach retracements / major confluence levels.

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Sold straight from the pin bar and it's developing nicely

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Nice big pull back.... let's see what happens.....

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So far we've not reached the resistance zone, but the previous move down, a good sign if we carry on down and break below. Only time will tell.

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If you're making lots of trades per day and risking more than a few % of your trading account on each trade, and trading lots of the same pairs all the time, your not trading, your gambling and badly. That maximum I ever trade is 5% of my entire trading account and that's to the top of my stop loss and that's only if the set-up is a 5 star, I may do that once a week if I'm lucky, it's normally closer to 1-3%

Don't trade to just be in the market in the hope of catching a move down or up, against this is gambling and not trading. Set your position size based on where the stops are relative to the previous structure.

If you're a total beginner trading with real money just following other traders, firstly you are crazy, secondly, I wouldn't trade more than 0.25% in that instance, if I was happy just following others, always do your own analysis and within your own trading plan / account management.

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When trading on a daily chart, my stop is above that pink box, the top of the pin bar, I have 1% margin on this trade with that stop

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Look at that, all the way back to previous fib resistance from today. Those hedge fund owners must be trying to get some quick cash before they fly off to the beach for the weekend

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If you don't like watching your trades go into the red, don't watch them. You have a stop loss, leave it and walk away for an hour, you cannot control the market, it does whatever it wants to do and no second is ever the same, every moment is unique and if you're sitting there willing it to change, you're fighting a losing battle, go for a walk, control your emotions, because this is one of the major components required to being a profitable trader.

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Back at break-even now, let's see if we can go lower, now you know where your stop should be, we just rejected the fib level

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Nice 1h candle .... I noticed some USD strength v the Yen, so maybe helping us on this trade.

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Finally into profit now, pays to be patient, the market doesn't go there when you want it too, it goes there when it goes there.

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Stops to break even, their twitchy trades today. Happy now you waited?

Trade closed: stop reached

Trade closed at break even.... enjoy your weekend people

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Ok, so we hit the target at that 50% fib level, now here are the ideas for the next moves on Cable.

Trade closed: target reached

Time to target: 4 weeks
Profit: 325 pips
2% risk - 1:3 return (6%)

CBMotivation

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CBMotivation

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