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Using Fibonacci ratios to manage your trades efficiently
by Sunil Mangwani
November 23, 10:00 GMT
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Today was a big day for the pound, as everybody watches the CPI report.
But as everyday, we get decent moves even before the announcement and this morning we got a pattern very similar to yesterday’s:
Price approaches to the Asian support and breaks the descending trendline, the previous swing and goes straight ahead till the Asian resistance. (Again ??)
See the charts for more information:
This Monday we didn’t get a spectacular opening. Instead, the price broke the Asian resistance and started to show up a consolidation pattern. After the accelerated ascending trendline at the London Opening we got the opportunity to go short. After Tucker speech, the price went all the way down till Asian support.
See the charts for more detail:
After yesterday’s nightmare at the European opening (very difficult session for trading yesterday), today the market behaved as expected on a day full of economic reports (9:30 and 10:30 GMT). From Asian resistance to Asian support, and from support to resistance again.
2 opportunities to trade the range at the European opening, a very profitable pattern that happens on this market very often.
See the charts for more details:
Today I posted very late, as I had to leave the office after trading:
See the charts for more detail:
After lack of volatility last Monday (the only one in about 2 months), big moves are back on Mondays at the European opening. Today we got a very clear pattern that occurs very often:
Consolidation pattern before Frankfurt opening, price breaks the main ascending trendline and price goes all the way down to the Asian support (where do i have heard that before?…)
Let’s see the chart:
After taking good rallies on Monday and Tuesday, today GBP/USD give us a good opportunity to profit from the markets on a very regular pattern: The Asian channel at the European window. Just a tight range but very profitable as we got a clear indication that repeats over and over:
See the charts for more information:
Cable is in down fall, and this morning almost reached the 100% retracement in 60m chart after 7 days making news lows.
The move anyway was quite tricky this morning because it started before the Frankfurt opening so only the early risers won the price today.
See the charts for more detail:
Today we got a 170 pips move in GBP/USD just at the Frankfurt opening. The price broke the ascending trendline after a ascending macd divergenge. After that, the price never looked back and falled down for 170 pips in streight line. All the supports were broken like gum: Asian support, 2 week 60m. support, round numbers, etc… 1.6100 is holding and I think it will hold till the N.Y session.
Cable give us this morning a clear pattern, forming a double botton at the asian support, so this is an indication at the Frankfurt opening that the market can reverse (as it does very often at this time)
Fist entry opportunity at the double floor.
Second entry opportunity at the break of the descending trendline. Stop below the previous swing low.
Target: The Asian resistance. It really stop at that level.
Today Cable went up very strong as the Nationwide HPI report got quite a lot deviation. The initial reaction was a strong spike but the price formed a consolidation pattern at daily resistance (62% retr. from the previous leg down). After the consolidation (123 figure) we got a good opportunity to go short, stop above the previous swing high, targeting the 100% retracement (very tipical when the price retraces after the news…)
