This video is about how I planned my WEAT trade.
It gives you a lot of insights into my thinking and how I apply the rules and Action/Reaction to the markets.
Of course, there would have be much more to explain and elaborate.
But let's just take one peace after another.
Happy weekend and good learning
As the market dropped below the Centerline, I patiently wait for a pullback.
And here we have it...
I'm short a the Pullback on the CL, with a target at least partial on the blue A/R line, or/and fully out at the L-MLH where price is definitely stretched.
This is a riskier one in the lower timeframe and price could blew easily through the Centerline again.
Happy weekend to all of you
Update - Trade Exit
So GBPUSD did not cooperate and I exited the trade with a loss.
Here's what was missing - the information comes from the daily chart, which I completely forgot to check. But hey - I'm only human and the next trade is cooking:
On the bigger scale we see why price reversed on me.
The Centerline was reached and a natural pullback is expected, if price don't zoom the CL.
We must learn from the mistakes we make to become better and better in our work each time.
Here we see another nice example about Action/Reaction.
What you see is a Fork with 4 Warning-Lines.
- watch how price acted at the U-MLH, at the CL and how the rules you learned so far are applicable. Study it deeply to get out of your time you spend on this Blog!
- price hit it's head first, bounce a little, then traded through it and did a test above it.
- price traded through it and hit the line multiple times. Nice indication that this WL acts as support.
- price just stopped at the WL, then traded through it and never came back (...this is the momentum created from the bunching at WL2
- price stopped dead at the WL and for now it looks like a reversal. But be careful, this is a weekly chart and the week is not over yet...additionally we are in a fast moving (slight exponential) uptrend!
Comment your observations below the chart please, thank you.
btw: isn't it beautiful to work with such a clean chart? No Indicators, no Oscillators, nothing that disturbs your mind and your thinking §8-)
2018-01-23 - Update with a live example
Here is your link to a live example.
To see how price did (...for you guys in the future), you just can click the "Play" button within the chart and see, what happened from today.
Remember - its a Weekly chart, so it needs time to draw the next bar from this week on...