GBPUSD Volatility – WOW

For those that do not already know, I use three intra-day charts to construct and manage trades. The chart shown in Figure 1, below is my primary construct chart. I use two other charts to manage entry and exits; each 1/10th the number of ticks per bar as the previous. This system helps me manage high volatility situations, such as occurred in the last two days with subject pair.

Also note that the many horizontal lines ate areas of expected support/resistance. They give me valuable info on entry/exit values, and an idea of how far a given move may go. You might note that the vast majority of the red bars (which show price activity for the previous 7500 ticks) start and end on one of these lines.

Figure 1  GBPUSD 7500 Ticks/Bar_11-2-2017

Now let’s look at Figure 2, which shows two trades indicated by my system – one trade yesterday and another today. Please, also remember that I prefer to complete my trades in one day – I do not like to hold trades over night in this market because the stop loss would have to be so large, due to market volatility. I would rather do my thing and sleep without concern for what this skittish market might do next.

Yesterday’s trade, a short trade, is indicated by the two blue horizontal lines.

Today’s trade is represented by the two purple horizontal lines.

Figure 2:  Two Trades

Yesterday’s trade was good, capturing 498 pips!

Today’s trade was fantastic, capturing 1321 pips!!

More than a 1 cent move in one day is huge for a FOREX pair.

After the trade was closed the pair continued going down for another 837 pips!

That move, starting the previous day, was for a whopping total of 2604 pips!!

My system is not automatic, it does not give definitive buy and sell notices. It is for the trader who wants to be guided – not led. You can find out a lot more about it in my eBooks Trading Between the Lines and/or See the Music of the Market. Both are available from Amazon.com: https://www.amazon.com/s/ref=nb_sb_noss_1?url=search-alias%3Dstripbooks&field-keywords=philip+c+elrod

 

 

 

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