I find that when one says the word; "bullish" or "bearish",it can create some misunderstanding for some traders. For example, if you look at the monthly chart of GBPUSD and if my analysis is right (i am at times wrong), then I forsee more downside to come. The white box shows the price action in a consolidation stage from 2009 to 2015 before it heads further south.
So it is bearish from the monthly chart's view. But when I open the chart into a smaller time frame like the day chart, the price sits nicely on the lower channel and closed above 21EMA. It is forming lower low and higher higher formation as well. It could goes up till it hit the 50% FIB level (like Sept 2016) and two months ago (Sept 2017) with a fake breakout, only to collapse below the 50% FIB level.
There is about 260 pips profit to be made if it goes up as I think it should before coming down. Then this 260 pips would be term bullish for some traders and they would buy. Of course, all these are theory speculation and it might not work 100% according to plan. So, from my perspective using a longer timeframe, buying now would be a counter-trend strategy for me, one that I had little success with in the past and rather be a good boy and stick to the trend. As they say, the trend is your friend until it tells you otherwise.
Yes, there is another extreme example where it shoot up to 1.38185, touching the 618 FIB level before a pull back happens. Could this happen? Of course, it is your guess as good as mine!
The important thing is stick to your own strategy if you think it works for you. There is always someone out there trying to sell you this indicator or that, touting it brings them 1000% profits or more. Any indicators if used correctly could yield similar results if one has the discipline to stick to it and not switch from one to another just because it fails occasionally. I was confused, lost $ and was constantly wanting to find the holy grail indicator that could day in night out make me money.
Hope you could learn from my silly mistakes and hold on to what suits your personality. All the best to everyone !
So it is bearish from the monthly chart's view. But when I open the chart into a smaller time frame like the day chart, the price sits nicely on the lower channel and closed above 21EMA. It is forming lower low and higher higher formation as well. It could goes up till it hit the 50% FIB level (like Sept 2016) and two months ago (Sept 2017) with a fake breakout, only to collapse below the 50% FIB level.
There is about 260 pips profit to be made if it goes up as I think it should before coming down. Then this 260 pips would be term bullish for some traders and they would buy. Of course, all these are theory speculation and it might not work 100% according to plan. So, from my perspective using a longer timeframe, buying now would be a counter-trend strategy for me, one that I had little success with in the past and rather be a good boy and stick to the trend. As they say, the trend is your friend until it tells you otherwise.
Yes, there is another extreme example where it shoot up to 1.38185, touching the 618 FIB level before a pull back happens. Could this happen? Of course, it is your guess as good as mine!
The important thing is stick to your own strategy if you think it works for you. There is always someone out there trying to sell you this indicator or that, touting it brings them 1000% profits or more. Any indicators if used correctly could yield similar results if one has the discipline to stick to it and not switch from one to another just because it fails occasionally. I was confused, lost $ and was constantly wanting to find the holy grail indicator that could day in night out make me money.
Hope you could learn from my silly mistakes and hold on to what suits your personality. All the best to everyone !
In the day chart, it dropped to 1.306 (touching the lower channel) and gap up to current price of 1.3115 (rebound).