In this article, I will explain how to trade critical price level and use of boxes to see that price has reached key levels.
Higher timeframe for big picture analysis and strong price levels
Always use boxes to determine what kind of trade you are in – Trend, Reversal, Counter. In this case, we are trading a reversal trade
A 1234 in the mapping, but to spot a trigger, you can also use the change of colours to determine change in sentiment. Most important use boxes to determine strength of this trade – this is a 3 week 1234 formation
Below 16630 has S at 16550-60 16510-20 16410-20. If we are going to see these support levels coming in, then GBPUSD would also WR previous month high
Update on 11 March 1.38pm by Binni Ong
Students asked if there was an 1234 on this sell trade.
The 1234 and 13TLB
A potential WRMB in the making if lower price is reached
Update by Binni Ong 13 Mar 5.39pm
Student wrote email to ask whether this trade is still valid.
Price reached a low of 16567. This was 7 pips away from a said support of 16550-60. If price turns against you then it is always a must to do trade management, especially when it was pointed out that this trade is a counter trend.
How do you know that this trade is valid?
1. As long as price keeps below F6 (Fib-R pt1 to pt4)
2. As long as there is no bullish expansion in H1. If price is above 16670 which was Jan 2014 high, then this is the first sign that a short trade is not good.
As GBPUSD is a counter trend trade, above 16750 is important for the bullish 1234 to complete and for a move towards 17050.