Forex Market Analysis Report – 12/27/18 – GBP/CAD…Play The Range

Forex Market Analysis Report – 12/27/18 – GBP/CAD…Play The Range
December 27 15:15 2018 Print This Article

A range-bound market is observed as a trading strategy that identifies and finds major support and resistance levels where a trader buys at the lower level of support and sells near resistance.

The reliability of the area of support or resistance depends on the number of times the price has reacted to it. The more the area of support or resistance is hit, the more reliable that support or resistance level will hold.

Traders capitalize on range-bound trading by repeatedly buying at the support line and selling at the resistance line until the asset breaks out from the range. Some examples include:

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The GBP/CAD offered an opportunity to play the range yesterday. The GBP/CAD has been range bound since July. Price entered the daily supply at 1.73000 and has since left the zone. Since the CAD is tied to crude oil and with oil up over 10% yesterday, this is also help any of range bound traders who shorted the GBP/CAD today.

Price did go down over 100 pips only to give up most of those gains today. This is the take of price action that separates the Professionals from the Novice traders. Novice traders are quick to get out of a trade when they are up big and given back most of the gains. Professionals traders have a trading plan with a stop, entry and target and stick their plan win, lose or draw.

I have no idea if this trade set-up is going to work. The job of trader is to control what they can which is to take low risk, high reward probability trades and let the Markets do what they do afterwards.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

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rollandthomas
rollandthomas

I'm a retail investor like most of you and learning everyday, but I have been educated and trained to identified the Smart Money on the charts to pick up whatever crumbs they leave behind.

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