Mondays are usually slow days and today was no different – most of the currencies did not give us good technical setups. But I’d like to take this opportunity to discuss a particular strategy with you. One of the strategies we teach at FX Instructor, called the GBP/USD Breakout Strategy, also known as the “Power Hour” strategy. We have refined this strategy and made it much more effective. This is a very powerful strategy, but there is one drawback – the rate of occurrence is relatively low. Maybe 3-7 times a month on average. However, when it does occur, the success ratio is astounding – we have the track record on our site if you want to have a look. Today we had a Short signal based on this strategy, on the GBP/USD 15 minute charts. We did not take this trade, as it was well on the way when we spotted it – I do not believe in jumping into a trade halfway through, even though our targets are quite well defined. Based on our system, we should have gone Short at somewhere around 2.0860, and price reached the targets of 2.0789 quite well. The “Power Hour” strategy takes advantage of particular price movements between the European and London market open. There are no indicators, no fibs, nothing else to follow – just price action. That is why it is very, very effective. On the USD/CHF we have been following up on a 4h setup and employed the Fibonacci Expansions. There is a particular way we use our Fibonacci Expansions. We generally use it for 1-2-3 Formations or b…/b
Browsing Posts tagged Gbp Usd
GBP/USD trend continuation (Long) trade based on the 4 hour closing candle: – Belt holding 4H close above previous resistance at the 23.6 fib level 1.6468. – Price action found support off the 8EMAon 4H and closed aggressively above the 1H box range. – 1D shows the 8EMA had taken control with price finding support off the 21EMA. – Angle and separation developing nicely on the 8 21 EMA’s on 1H and 4H charts.
GBP/USD trend continuation (Long) trade based on the 4 hour closing candle: – Belt holding 4H close above previous resistance at the 23.6 fib level 1.6468. – Price action found support off the 8EMAon 4H and closed aggressively above the 1H box range. – 1D shows the 8EMA had taken control with price finding support off the 21EMA. – Angle and separation developing nicely on the 8 21 EMA’s on 1H and 4H charts.
Two GBP/USD trades explained. Includes EMA’s / trendlines / MACD / pivot points! Any questions please ask.
