Direct from the desk of Dane Williams,
This is not your average forex broker email.
Today’s in-play market that I identified over on the blog, is GBP/USD.
This is a setup we’ve been stalking for a while now, with the higher time frame resistance zone having been on our chart pretty much since it was previously support.
But GBP/USD has now retested the zone as resistance and it looks like we’ve got a decent reversal setup on our hands.
Now zoom into the hourly and lets have a look at how we can attack it for maximum reward.
You can see that we have our higher time frame resistance zone between the horizontal lines.
Price has rejected out of it, meaning that we’re now looking to short on short term pullbacks.
The first area of previous short term support that we look to turn to resistance and trade around, I’ve marked with an x.
If you’re an aggressive trader that’s looking for a quick 1:3 risk:reward trade, then place your stops above that box.
But remember the setup is only actually invalidated if price goes above the higher time frame zone.
Risk management is key!
If you’d like to talk more about risk management in these setups, then simply hit reply to this email and get in touch.
I read and reply to everyone inside my Inner Circle who takes the time to chat.
Best of probabilities to you,