Correction to the previous GBPUSD post (Wrong Chart posted)
DATE: 11/04/2014
RENKO CHART
Price has made a new high. (value based on close, actual high on candlestick not breached yet)
Implies that buying strength has increased
Gap between 200 and 50 EMA is still wide, supporting up trend
CANDLESTICK CHART
Price zoomed past INTERNAL FIB LINE (IFL) of the uptrend pitchfork
Currently undergoing a retest of the IFL.
A pin bar yesterday is a warning of the lack of conviction by market players to buy into GBP
CONCLUSION
WAIT for the IFL to be tested and supported before making a buy.
IF BUYING, PROJECTIONS
The IFL provides a good spot to place Stop loss for aggressive position sizing (1.675-1.676 region)
Otherwise a 2*ATR or the latest PSAR value could be used as stop to allow the pair more space to wriggle
TARGET PRICE: Ride the trend!
RENKO CHART
Price has made a new high. (value based on close, actual high on candlestick not breached yet)
Implies that buying strength has increased
Gap between 200 and 50 EMA is still wide, supporting up trend
CANDLESTICK CHART
Price zoomed past INTERNAL FIB LINE (IFL) of the uptrend pitchfork
Currently undergoing a retest of the IFL.
A pin bar yesterday is a warning of the lack of conviction by market players to buy into GBP
CONCLUSION
WAIT for the IFL to be tested and supported before making a buy.
IF BUYING, PROJECTIONS
The IFL provides a good spot to place Stop loss for aggressive position sizing (1.675-1.676 region)
Otherwise a 2*ATR or the latest PSAR value could be used as stop to allow the pair more space to wriggle
TARGET PRICE: Ride the trend!
