Hi Traders! GBPCAD Intraday buy idea update and follow up is here. On April 28th I shared this “GBPCAD Intraday Buy Idea From Strong Support Zone” post in trading view. In this post, let’s do a recap of this setup and see how it has developed now. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club. Spoiler alert – free memberships are available!
GBPCAD H4(4 Hours) Chart Current Scenario
Based on the above mentioned analysis my view was bullish here and until the strong support zone holds I was expecting the price to move higher further. The price action didn’t follow my analysis here and this idea failed. The price which was moving lower reached the strong support zone but the price didn’t hold in this zone as we expected it to. The price then moved lower further and we got a valid breakout below the strong support zone thus invalidating the bullish view here. My current view on this pair is neutral.
So traders, this is why I wanted to show this example to help you understand why we should always trade based on the facts and hints provided by the market and take the right actions according to that. Even though we had a potential bullish divergence that was forming this divergence didn’t complete itself when the price was holding in the strong support zone. Then as you can see in the image above how the price moved lower further and broke below the strong support zone after that, which is a contradictory sign opposing the bullish view. Also, you should keep in mind that losses are part of trading we can’t expect every trade to go as per our plan and provide us profits. In trading, we can’t avoid losses but in order to be successful in trading, we should know how to cut losses early and how to manage the trade when the price goes in the opposite direction.
Note: You can watch my webinar on how to cut losses early here
In order to learn about this and much more, I invite you to join the Traders Academy Club and you can also get access to our complete watch list and trade report.
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To your success,
Certified Financial Technician