12/23/08 - GBP/USD Triple Bottom

Discussion in 'Forex' started by btowntrader54, Dec 23, 2008.

  1. Looks like a triple bottom in place on the GBP/USD @ approximately the 1.47 level.

    Any thoughts?
     
  2. Brandonf

    Brandonf ET Sponsor

    A triple bottom is a terrible pattern on average to buy. More money can be made, with less risk on average, by shorting it.
     
  3. I appreciate the heads up. Then as a short position do you like it?
     
  4. just21

    just21

    GBPCHF went to an all time low today, the dollar and pound probably have the worst fundamentals of any currencies.
     
  5. You could take a long using 4470 as your stop, which appears to be the low. Possibly scale in small in case price decides to test that number or just wait until price gets closer to that number before initiating your long.

    I agree it appears to be a better short right now. Need to see some sort of bullish candle on a 4hour or D chart to confirm. However in waiting for that you may give up 300-400 pips.

    My strategy would be to take a long as close to 4470 as possible. If price breaks it, you could stop and reverse and go with the short...

    Idea of course is trying to get in as close as possible to your stop point to minimize your risk.
     
  6. you would change your thoughts on this trade that quick?
     
  7. PaulRon

    PaulRon

    these are my types of trades.... tight risk management at big levels of support and resistance. how can you go wrong?

    increasenow... yes i would change my trade the instant price broke. that's unbiased trading
     
  8. I agree with Inow. You shouldn't change your trading analysis just because someone posts "no". If you aren't confident enough in your play you shouldn't trade it.

    What you are saying is very different, PaulRon.