Did you catch the GBPAUD 2 day, 540 pip trend on Thursday?

Conventional Trading of the GBPAUD

The GBPUSD has had a 540 trend in the last 2 trading days. Both fundamental and technical traders had a good chance of reading the signs on the wall which made this a elementary trade

 

Did you catch the GBPAUD 2 day, 540 pip trend on Thursday

The Chart above shows a great 540 pip trend by the GBPAUD.

Many signals that would have helped you catch the trend are:

  • Triangle breakout
  • Trendline violation
  • RSI trend line violation
  • Evening star candle
  • MA crossover
  • Support breakout

Relative strength charts

Further more the relative strength charts showed great support and resistance breakouts.

http://www.moneymakingforextools.com/relative-strength-of-currency-tools/

Relative

The Question now is – What do you do now?

  • Do you cash your deal in
  • Do you add to your position – the price is making new lows
  • Do you cash 50% in and let the rest ride with a trailing stop?
  • Do you wait for the moving average crossover?
  • Do you just add a trailing stop?

 

2 Comments

  • Fiona

    November 22, 2015

    I’ve long admired the RSI trendline break, do you still look for touch of both oversold and overbought with two waves?

    • Alex du Plooy

      November 22, 2015

      Yes that is the best way to trade the signal. Remember that the OB and OS should be adjusted for trending markets. So OB of 80 can become OB at 60 in a down trend.

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