TheForexGuy
TheForexGuy.com Representative
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Hey traders,
Much respect to Forex Peace Army crew for becoming an authority in many aspects of the Forex industry. I've started this thread with intention of sharing my views/commentary/analysis of various Forex currency pairs with the traders here.
A little bit about me, I've been trading for over 6 years trading exclusively with price action trading strategies. I had my fair share of jumping from system to system, but I found my footing fairly quickly with price action trading.
To trading with "price action" essentially means to make trading decisions from the data you have from the raw price charts. Mainly utilizing support & resistance, trend lines, candlestick analysis and I throw in mean value analysis in with my trading methodology also.
Let's jump straight into it.
A double Inside Day setup on the GBPUSD daily chart is the perfect catalyst for a potent breakout...
The market has just broken back above an important level on the daily chart and is now holding as support. The market has been tightly churing for the last two days creating the cascading inside day pattern.
A general rule of thumb is, the longer consolidation occurs, the more severe the breakout is. On the intraday chars, Inside days generally look like ranges or price squeeze patterns like triangles and wedges.
If the market breaks the high of the previous inside day, long positions could be considered. Watch out for breakout traps, where the market clearly breaks out of the pattern and then collapses back in on itself. If this should occur, we would most likely see severe bearish follow through.
Much respect to Forex Peace Army crew for becoming an authority in many aspects of the Forex industry. I've started this thread with intention of sharing my views/commentary/analysis of various Forex currency pairs with the traders here.
A little bit about me, I've been trading for over 6 years trading exclusively with price action trading strategies. I had my fair share of jumping from system to system, but I found my footing fairly quickly with price action trading.
To trading with "price action" essentially means to make trading decisions from the data you have from the raw price charts. Mainly utilizing support & resistance, trend lines, candlestick analysis and I throw in mean value analysis in with my trading methodology also.
Let's jump straight into it.
A double Inside Day setup on the GBPUSD daily chart is the perfect catalyst for a potent breakout...
The market has just broken back above an important level on the daily chart and is now holding as support. The market has been tightly churing for the last two days creating the cascading inside day pattern.
A general rule of thumb is, the longer consolidation occurs, the more severe the breakout is. On the intraday chars, Inside days generally look like ranges or price squeeze patterns like triangles and wedges.
If the market breaks the high of the previous inside day, long positions could be considered. Watch out for breakout traps, where the market clearly breaks out of the pattern and then collapses back in on itself. If this should occur, we would most likely see severe bearish follow through.