Wednesday, January 16, 2008

Chart of Interest: Price Continuation

GBPUSD 5-min
  • Heavy selling, strong price action
  • Two sizable downward moves, 2 x 80 pips
  • 2nd leg occurred after US close (a rare occurrence)
  • Previous support level (blue line) turned into resistance after price breakout

2 comments:

PC said...

Nice trade Lloyd. Good old Support turn resistance.
Nice :)

Lloyd said...

Indeed, Peter. However, I only realised the pontential of such a trade setup after seeing the outcome. Personally, I would not dare to open new positions after strong 1st leg price movement. I had to rely on my expert advisor to pick up the short entry during the price consolidation phase.