GBPUSD H1 – Dynamic trend +145Pips

2015-10-18 13_09_04-GBPUSD,H1

  1. At the time of entry the background turned to strong. It means that imbalance of supply and demand is now in favor of demand.
  2. Very strong signal (Major Demand) before the trend changed its direction.
  3. Dynamic trend turned from red to green.
  4. Entry – when the background turned to strong and the price didn’t move too far from the dynamic trend.
  5. Exit after weak signal (Supply) appeared in the chart.

Total: +145 Pips

In the chart we see that mid-term resistance (previous high) was crossed by wide spread up-bar on high volume.

Resistance – this is a level of previous high, many traders bought near the highs and were locked-in when the price suddenly fell. They are now holding out in the hope of reducing their losses. Locked-in traders want only one thing – to get out of the market at a similar price to the one they first started with. Professional traders that are still bullish know this. To encourage these old locked-in traders not to sell, professional traders will mark-up, or gap up the market, through these potential resistance areas as quickly as possible.


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