Please see attached screen shot of today’s dummy trade GBPUSD for which I formulated the following battle plan:
From the D1 chart price is above the MOR and buyers are in control. ECO news is expected 0800 – avoid! There is untested resistance overhead + 60 pips which is a definite target area. There are no trend line intersections to worry about or Fibo extension levels of particular interest. The obvious target level for this trade is the resistance at + 60 pips. This coincides with the Gann 100 level from the M15 chart.
The DOR High is above the MOR, so with the buyers in control the statement of intent is to look for buy entries once the Eco news is through.
1100: Bull engulfer prints. Stop loss size – 22 pips. Reward/risk ratio = 3 worst case.
Buy stop order @ 1.5656, Stop loss order @ 1.5634. Take profit order 1.5736 (just below Gann 100 and untested resistance).
1130: Stop loss to break even.
1145 stop loss to very close to Gann 75, just under untested resistance.
1715 Stopped out on the trailing stop @ 1.5719
Result + 63 pips, + 8.9% ROI.
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