WARNING: This text is a word-for-word transcription of Mac’s daily forex trading video. That means the writing will reflect the way he speaks, if anything seems out of place, please refer to the forex video on the page.
All right, everyone. We are looking at the British pound here, on a daily. Let’s go ahead and zoom in on just the last consolidation are for the pound here. And remember, what we’ve been focusing on are two areas of consolidation: one that takes up the top part of trading and the other which is encompassing, basically, the bottom spikes as well as the consolidation range that we had going on down here. Yesterday, or the day before, I was talking about the pennant pattern here, on the daily. And also, my comment was, whenever you get these compression patterns on a daily time frame, you’ve got to realize that the daily time frame represents a whole heck of a lot of opportunity. You’re going to want to go into the one‑on‑one support session for this week and take a look at that support session, because I talk about time and price and why it’s important and how to think about trading in terms of price and time.
Day before yesterday, I think, is where I talked about a possible breakout. Here was a false breakout to the downside. And so now we have, potentially, a breakout to the upside.
The thing to remember here is we need to see price get above all of this resistance before we start thinking in terms of trending to the upside. OK? So, until then, we’ve got to still think counter‑trend, but with the possibility of a breakout.
Remember, I talked about watching the market come up, break to the upside and then give a little dipper, before looking for any kind of trend, or breaking to the downside and coming up before making any kind of trend. Based on where the market closed today, we have a double‑top forming here, and so we’re going to need to pay attention to this for counter‑trend trades and capitalizing on the market breaking to the downside. And so you’re going to take at least a cautious look at the market, as far as breakouts to the upside.
Having said that, looking for long trades above the resistance here at 6,600. On the downside, that’s going to be below support, at 6,837. Remember, on the short trade, you’re really looking at 6,300 as a floor, with possibly a little bit more. Let me see. It’s going to be 6,260, or thereabouts. 6,250. So maybe another 50 pips below the even number here. But if we can see price break below there, like I said, we’ve got a vacuum area running between these two zones, and so we might get a very fast move down to 6,100.
Comments on this entry are closed.