GBPUSD ANALYSISAfter seeing GU reject a daily trendline area of resistance for a retracement, we could see price continue to the upside after reaching into the Fibonacci 61.8%
Pullbacks
Stop Loss Placement: Let Your Trade Cook!Intro
I tried to talk through stop-loss placement in 3 minutes here. I do not think justice was done. So let's take a look at exactly what I mean when I say "Let Your Trade Cook". Proper stop-loss placement is critical to a successful trading plan.
Don't Place Your Stop Like Everyone Else
You are guilty of this, if you have been stopped out many times just to see the price move immediately back in your favor. The picture below represents a bunch of pullbacks some long and some short and it has been color-coded to define entries combined with stop losses.
Blue = Entry
Black = Typical Stop
Orange = A Good Stop To Let Your Trade Cook
Red = An Aggressive Stop To Let The Trade Cook
Conclusion
Hopefully, the video along with this image provides you with a better system for discretionary stop losses. I tend to favor the idea that just above or below a momentum bar in the previous swing as my stop loss.
Keltner Bands Pullback StrategyHere we take a look at trading pullbacks using the Keltner Channels. I cover the initial setup, the types of entries, and trades to avoid.
This setup contains 3 parts:
The channel touch
The Pullback
The Entry
The Channel Touch
Here is an example of the beginning signal in our setup, a band touch. The top and bottom bands represent the ATR (Average True Range) of a loopback period. So a touch of the band indicates volatility in the underlying stock or commodity. This also presents us with a chance for a nice pullback with continuation.
The Pullback
The pullback is simple, it is a reversion to the mean. So, the price pulls back to the mean (the ema) that the Keltners are based on. From this point, you can start to determine the entry.
The Entry
Depending on your style, a stop order, or limit order trader, you get to create your style to enter the trade. The following are some ideas: zero line MACD cross, second entry (price action) long or short, a trigger zone (for limit order traders), and an ema touch (limit order traders).
Zero Line Entry
Price pulled back and crossed the zero line on the modified MACD indicator.
Second Entry Long (High2)
The entry is the second attempt to break the previous bars high in a pullback.
The Trigger Zone
I created these based on an internal Keltner channel. You can set your limit orders anywhere inside of them.
EMA Touch
Whenever the price touches an offset ema you can enter. So you can place and move your limit order as the ema moves. I like to offset by one because you are guaranteed a price touch (ema doesn't move). Backtesting is also my accurate with an offset ema.
Conclusion
The Keltner channels offer an extremely powerful way to determine a potential pullback within a trend. They also help define trends (on the first touch) and help objectively identify climatic behavior. This strategy as a whole allows for high-quality setups and the flexibility of entering and exiting trades based on trading style. I like to shoot for a 1:1 based on stop placement.
EURAUD Short Term Buy IdeaH1 - Bullish trend pattern.
Currently it looks like a pullback is happening.
No opposite signs.
Until the two strong support zones hold my short term view remains bullish here.
NZDCAD - Looking To Buy Pullbacks In The Short TermD1 - Price respected a key support zone and is bouncing higher.
False break with bullish divergence.
Expecting the price to continue higher further in the short term.
H4 - Most recent downtrend line breakout.
No opposite signs.
Until the strong support zone holds I expect the price to move higher further after pullbacks.
EURNZD - Looking To Buy Pullbacks In The Short TermH4 - Bullish divergence.
Downtrend line breakout.
Higher highs.
No opposite signs.
H1 - Bullish trend pattern.
Currently it looks like a pullback is happening.
Until the strong support zone holds I expect the price to move higher further after pullbacks.
GBPCAD Short Term Sell IdeaH4 - Bearish divergence.
Most recent uptrend line breakout.
No opposite signs.
H1 - Bearish trend pattern.
Currently it looks like a pullback is happening.
Until the two strong resistance zones hold I expect the price to move lower further after pullbacks.
EURCAD - Looking To Sell Pullbacks In The Short TermH4 - Price has broken below a strong support zone which currently acts as a strong resistance zone after the breakout.
Lower lows.
No opposite signs.
Until this strong resistance zone holds I expect the price to move lower further after pullbacks.
NZDCAD - Looking To Buy Pullbacks In The Short TermH4 - Bullish trend pattern.
Higher highs.
No opposite signs.
Until the strong support zone holds I expect the price to move higher further after pullbacks.
USDCAD - Looking To Buy Pullbacks In The Short TermH1 - Bullish trend pattern.
Higher highs.
Until the two support zones hold I expect the price to move higher further after pullbacks.
GBPCHF - Looking to Buy Pullbacks In the Short TermD1 - Price is bouncing higher from a key support zone where the bottom of the range coincides.
Bullish divergence.
H1 - Higher highs.
No opposite signs.
Until the two strong support zones hold my short term view remains bullish here.
EURGBP Short Term Buy IdeaH4 - Price is bouncing higher from a key support zone.
Bullish convergence.
Until the key support zone holds I expect the price to move higher further after pullbacks.
GBPAUD - Looking To Buy Pullbacks In the Short TermD1 - Double wave correction.
Price is bouncing higher from a strong support zone.
Bullish divergence.
Most recent downtrend line breakout.
H4 - Higher highs.
No opposite signs.
Until the strong support zone holds I expect the price to move higher further after pullbacks.
GBPUSD - Looking To Sell Pullbacks In The Short TermD1 - Price has reached a strong resistance zone.
Bearish divergence.
H1 - Bearish divergence.
Lower lows.
Until the strong resistance zone holds my short term view remains bearish here.
CADJPY Bearish ideaW1 - Price respected the psychological level 110 and bounced lower.
Bearish convergence.
D1 - Currently it looks like a pullback is happening.
No opposite signs.
Until the strong resistance zone holds I expect the price to move lower further after pullbacks.
Gold - Looking To Buy Pullbacks In the Short TermD1 - Price has reached a key support zone and is bouncing higher.
Bullish divergence.
H4 - Bullish divergence.
Higher highs
Until the key support zone holds I expect the price to move higher further in the short term after pullbacks.
AUDCHF Short Term Buy IdeaD1 - Price is bouncing higher from a key support zone.
Bullish divergence.
H1 - Bullish divergence.
Higher highs.
Until the key support zone holds I expect the price to move higher further in the short term after pullbacks.
NZDJPY Short Term Sell Idea After Bearish Trend PatternH4 - Price is blocked by a key resistance zone.
Bearish divergence.
Lower lows.
H1 - Bearish trend pattern.
Until the key resistance zone holds, my plan here is to sell pullbacks in the short term.
USDCHF - Looking To Sell Pullbacks In the Short TermH4 - Price is bouncing lower from a key resistance zone.
Bearish convergence.
H1 - Bearish trend pattern.
Until the key resistance zone holds I expect the price to move lower further after pullbacks in the short term.
Oil - Looking To Buy PullbacksW1 - Higher highs followed by a correction in the form of double wave down.
Price has reached a key support zone.
Bullish hidden divergence.
H4 - Bullish divergence
Higher highs
Until the key support zone holds I expect the price to move higher further after pullbacks.
EURGBP - Looking To Sell Pullbacks In The Short TermH4 - Price is bouncing lower from a strong resistance zone.
Bearish divergence.
Expecting short term bearish moves to happen here.
H1 - Bearish trend pattern.
Currently it looks like a pullback is happening.
Until the strong resistance zone holds my short term view remains bearish here.
Dollar Index - Looking To Sell Pullbacks In The Short termH4 - Bearish convergence.
Currently it looks like a correction is happening.
Until the strong resistance zone holds I expect the price to move lower further after pullbacks.
AUDUSD Buy IdeaD1 - Price is bouncing higher from a key support zone.
Bullish divergence.
H4 - Bullish convergence.
Until the key support zone holds I expect the price to move higher further after pullbacks.
