Direct from the desk of Dane Williams,
This is not your average forex broker email.
I know I haven’t talked live trade calls in this email for a while, but I just keep finding these little areas of price action around old zones that I’ve previously highlighted on the blog.
The way that price reacts to old levels still gets me, giving validation to the way that I conduct my analysis and I know it can be valuable to share with you guys who are still getting your head around things.
While writing today’s EUR/GBP daily market analysis, I was drawn back to the price action from after we’d taken our 100+ pip long trade on the pair.
The way that price reacted breaking back lower through the higher time frame support zone that we used to base that long trade off.
Take a look at the EUR/GBP intraday price action on the chart below.
At the time, price was above higher time frame resistance, so we were looking for longs. You can see I’ve marked the short term resistance that we were using as support to long off, in green.
Price ripped higher off the retest and we made some money.
But now look at how price reacted to the same zones price went lower through higher time frame support. I’ve marked the retests of the same short term zones we were using to buy off, in red.
Perfect retests from the other side!
Pretty cool huh.
If you have any questions about this setup or the simple support/resistance trading strategy that I use, then simply hit reply to this email.
I read and reply to everyone inside my Inner Circle who takes the time to email.
Best of probabilities to you,