Long GBPCAD Reversal
Updated
Seems crystal clear at first, but may be dangerous once you look at it: Long on GBPCAD
all 4 indicators give strong buying signals, so just judging the RSI we should be reversing soon. The problem is that with the MACD being way below the 0-level and no real increase in divergence happening, we oculd be facing some longer term downward trend. Also, we are currently moving sideways, judging be the channel. Bollinger signals Up, yet, in combination with MACD, there could be some lasting downward trend, in which case this trade might be dangerous. What gives me faith is looking at the possible Fib-Retracement, so we obviously set our take profit rather bearish to not speculte too much on this one, eventhough this will surely depress our Risk-Reward-Ratio. Trading is about being risk averse after all, isn't it? ;)
all 4 indicators give strong buying signals, so just judging the RSI we should be reversing soon. The problem is that with the MACD being way below the 0-level and no real increase in divergence happening, we oculd be facing some longer term downward trend. Also, we are currently moving sideways, judging be the channel. Bollinger signals Up, yet, in combination with MACD, there could be some lasting downward trend, in which case this trade might be dangerous. What gives me faith is looking at the possible Fib-Retracement, so we obviously set our take profit rather bearish to not speculte too much on this one, eventhough this will surely depress our Risk-Reward-Ratio. Trading is about being risk averse after all, isn't it? ;)
Note
It appears that the previously mentioned potential longer term downward trend seems to have persisted. Fortunately, the 4 hour chart indicates reversals on a bigger scale coming soon so we'll stay in the trade and hope for a retracement big enough to make us go green $$$Trade closed: stop reached
Fundamentals ruining the day... Weak Retail Sales give bearish signals, making a reversal from our position practially impossible. Over & Out - oh, Canada...
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