Textbook "Reversal Day" for GBPUSD | Forex Factory

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Textbook "Reversal Day" for GBPUSD

  • #1
  • First Post: Edited 7:14pm Nov 1, 2006 6:39pm | Edited 7:14pm
In a bullish market, a reversal day consists of trading range that reaches a new high but closes lower than the previous day's high. This pattern reflects up side exhaustion.
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  • #2
  • Nov 1, 2006 7:20pm Nov 1, 2006 7:20pm
I agree, I also posted about this here http://www.forexfactory.com/forexfor...ead.php?t=9749
  • #3
  • Nov 1, 2006 7:24pm Nov 1, 2006 7:24pm
Quoting mpathare
I agree, I also posted about this here http://www.forexfactory.com/forexfor...ead.php?t=9749

Also, close to being a pin bar bearish signal. I am short at 1.9077, what SL would you place. Currently I put it at 5 pips higher than previews day's close. Thanks.
  • #4
  • Nov 1, 2006 7:34pm Nov 1, 2006 7:34pm
Quoting wwwin
Also, close to being a pin bar bearish signal. I am short at 1.9077, what SL would you place. Currently I put it at 5 pips higher than previews day's close. Thanks.
I am actually waiting for the current bar to drop below the pin. I will enter around 1.9055 and set SL above the left eye around 1.9105. Or maybe above the pin, but thats too many pips for me.
  • #5
  • Nov 2, 2006 12:50am Nov 2, 2006 12:50am
Quoting mpathare
I am actually waiting for the current bar to drop below the pin. I will enter around 1.9055 and set SL above the left eye around 1.9105. Or maybe above the pin, but thats too many pips for me.
Pin Bar confirmed
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  • #6
  • Nov 2, 2006 1:01am Nov 2, 2006 1:01am
Hats off to you Pal- Nice Work


QUOTE=wwwin]In a bullish market, a reversal day consists of trading range that reaches a new high but closes lower than the previous day's high. This pattern reflects up side exhaustion.[/quote]
Trade what you see - Not what you think
  • #7
  • Nov 2, 2006 1:26am Nov 2, 2006 1:26am
Quoting summitfx
Hats off to you Pal- Nice Work


QUOTE=wwwin]In a bullish market, a reversal day consists of trading range that reaches a new high but closes lower than the previous day's high. This pattern reflects up side exhaustion.
Thanks
  • #8
  • Nov 2, 2006 1:58am Nov 2, 2006 1:58am
Bloomberg yesterday on cable (message I received at 11:57 GMT):

Next resistance- 1.9135-44 Support – 1.9046

Seems that cable is going down ...

See you after Trichet's speak
  • #9
  • Nov 2, 2006 2:32am Nov 2, 2006 2:32am
yes i too think that it will go further up.Especially in euro session.

Though it may start to reverse in late us session today.
  • #10
  • Nov 2, 2006 8:01am Nov 2, 2006 8:01am
I will be surprised to see much of a move today with non-farm coming tommorow
Profit is where readiness meets Opportunity
  • #11
  • Nov 2, 2006 9:14am Nov 2, 2006 9:14am
yesterday after midnight took 29 pip profit on 1/4 of position and adjusted SL on whole trade to break even. Was stopped out of trade at break even. Today after 10 am report, took short again at 1.9101. I believe the reversal pattern and the pin are still valid. If available though, will take some profit if enough to be worth it today, anticipating a big move either way tomorrow because tomorrow's news can be dangerous either way. If flat by tomorrow's news will play the news in the direction of the market.
  • #12
  • Nov 2, 2006 9:53am Nov 2, 2006 9:53am
Took 30 pip profit on 1/4 of position at 1.9071 and adjusted SL on whole trade to break even at 1.9111 on the remaining 3/4 of my initial position.
  • #13
  • Nov 2, 2006 9:56am Nov 2, 2006 9:56am
nice entry...
  • #14
  • Nov 2, 2006 10:40am Nov 2, 2006 10:40am
Quoting enoc2g
nice entry...
I think right now the traders have no conviction on where this is going. That is usually what happens when a trend is losing steam. Hopefully, they will start to have some downside conviction, and when the rest of the crowd joins them, then the downturn will be confirmed.
  • #15
  • Nov 2, 2006 10:44am Nov 2, 2006 10:44am
I agree even if im wrong im sticking with my strat, also short from a slightly lower level.
  • #16
  • Nov 2, 2006 10:47am Nov 2, 2006 10:47am
This first sign of dollar strenght via NFP or whatever and this thing will fall like a ton of bricks right now its sucking in all the dumb money like a vacumm think price will grow to the sky, then bam!! huge drop off and everyone will be like what the hell happened?!! even if we do get another run up it will most likely be followed by a short squeeze just like this recent attempt at 9140...

just my opinions.
  • #17
  • Nov 2, 2006 10:48am Nov 2, 2006 10:48am
Quoting wwwin
I think right now the traders have no conviction on where this is going. That is usually what happens when a trend is losing steam.
I think you'll find it has more to do with FXOpportunities earlier comment in regards to tomorrow's Payroll print......

players won't be looking to instigate any (large) fresh positions until that item is in the can.....and those still 'long' the Cable will have pared off, looking to re-jig stops leading into tomorrows NY Open.......
  • #18
  • Nov 2, 2006 6:26pm Nov 2, 2006 6:26pm
http://bloomberg.com/apps/news?pid=2...refer=currency
  • #19
  • Nov 2, 2006 6:42pm Nov 2, 2006 6:42pm
Quoting enoc2g
This first sign of dollar strenght via NFP or whatever and this thing will fall like a ton of bricks right now its sucking in all the dumb money like a vacumm think price will grow to the sky, then bam!! huge drop off and everyone will be like what the hell happened?!! even if we do get another run up it will most likely be followed by a short squeeze just like this recent attempt at 9140...

just my opinions.
By now on Oanda, 24% are long against 76% short on gbpusd.

See here.
Harmonics and Pitchfork using korHarmonics from TradingArsenal
  • #20
  • Nov 2, 2006 6:45pm Nov 2, 2006 6:45pm
And most people that are short are holding lost on there trades, but they think it will go down. See graphics.
Harmonics and Pitchfork using korHarmonics from TradingArsenal
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