Closed my buy trade at 1.4960 when GU 1-hour candlestick closed below the Fibonacci channel -161.8. This means that it has made a new lower LO. A strong move for downtrend. In the second attempt to retest the previous channel at 0 (the uptrend channel which it was holding it nicely until yesterday), it was rejected and the next candlestick closed in doji pattern which I took it as weak bull strength. There is no more reason to hold this position.
Wednesday, March 24, 2010
GBPUSD Confusing Trend - Trapped in Whipsaw [UPDATED v2]
Closed my buy trade at 1.4960 when GU 1-hour candlestick closed below the Fibonacci channel -161.8. This means that it has made a new lower LO. A strong move for downtrend. In the second attempt to retest the previous channel at 0 (the uptrend channel which it was holding it nicely until yesterday), it was rejected and the next candlestick closed in doji pattern which I took it as weak bull strength. There is no more reason to hold this position.
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