Anatomy of a Day Trade: GBPUSD

 

 

                               GBP/USD
 Long Short Line 1.3126
 Most Important 1.3087 and 1.3101 vs 1.3134, 1.3142, 1.3151, 1.3159, 1.3176, 1.3183 and 1.3192
 Bottom. 1.3061 achieves by 1.3094 and 1.3077
 Upper target 1.3192
 Continuation fail 1.3159
 break Point 1`.2779
           The Process
 1. factor the bottom 1.3061, Given by Central bank interest rates.
2. Factor most Important to bottoms. 1.3087 and 1.3101. Those are vital average lines offered by central bank interest rates.
So far we have 1.3101, 1.3094, 1.3087 Most Important, 1.3077 then 1.3061 Bottom.
Bottom Complete. Now able to trade bottom prices.
3. Factor Upper target and Continuation fail Lines. Upper Target = 1.3192 Range Factor,
Continuation fail 1.3159 = MA or 1/2 distance
4. Factor upper levels 1.3134, 1.3142, 1.3151, 1.3159, 1.3176, 1.3183 and 1.3192. Eliminate most vital 1.3192 and 1.3159
We have 1.3134, 1.3142, 1.3151, 1.3176, 1.3183
Break Point = Most Vital MA Line. We track this number twice daily. My system allows this to monitor changes by inserting the daily trade number. A price break above, Long. A price break below then short.
All see the trade as GBP/USD.
The actual Day trade and what is not seen is GBP/USD Vs USD/GBP.
By transposing interest rates to exchange rates, we are able to capture perfectly the range and relationship as GBP/USD Vs USD/GBP.
In 90% + of day trade instances, ranges don’t ever break but its impossible to break because of the range relationship GBP/USD Vs USD/GBP.
 Analysts and commentators say, GBP/USD traded to X Point. Wrong.
Lower GBP/USD maybe only GBP/USD trading while higher maybe USD/GBP trading.
The overall range is generally  factored as 1/2 to GBP/USD and 1/2 to USD/GBP.
The day trade and trade strategy is known long in advance and no mysteries to strategy.
Profit per currency pair is about 50 ish pips per day as a good average. Some days, a bit more, other days, a bit less.
 The day trade system was invented by reading academic papers on new Central bank interest rate and trade methodologies.
For example, they best trades says the BOE are found at 3 news announcements, UK, EUROPE and 8:30 am United States
               Strategy
 Purpose of this system is to trade multiple longs and shorts rather than 1 trade that pays nothing then walk away from the pair.
    Trade strategy.
 1. daily trades best trade opportunities are 3 news announcements for UK, Europe and 8:30 am EST United States.
2. Best strategy is short at or near upper target or long at or near bottoms.
3. Purpose for my day trades is to allow multiple longs and shorts in each currency pair to allow for continuous trade profits.
4. Day trades are used also to track weekly trades. Means day trades inform when will weekly targets achieve destinations.
5. Object for day trades is extra pips for the week so never to get greedy or hold to earn last traded pip.
 6. Long short line. Take the trade in the direction of the break when it complies with the weekly trade. EUR/USD this week is overbought and we are short therefore take the break of the line when price breaks below and trade to at or near bottoms.
7. Multiple trades means long at or near bottoms and short at or near upper targets. or short at or near upper targets and long at or near bottoms. This scenario happens everyday with every currency pair. Don’t trade when price is at center of overall prices.
8. Ranges rarely break except for GBP but it doesn’t happen often. A range break above upper target or below bottoms is a free market gift for free money.
9. A price breaks range above upper target or below bottoms mean price must by math law trade back to above bottoms and below upper target.
10. Most Important are vital daily averages. they change everyday.
11. Continuation fail Line is an average and must break higher in order for price to trade to upper target. A price may fail and reverse short at the continuation fail line.
 12. For long trades are provided most vital trade able points so to follow the trades and to know exactly where the price is located.
13. In all, a low price at or near bottoms will travel long and a price at or near upper target will trade short.
14. use the Long Short Line as the guide.
                        \
               Comparision
  GBP/USD
 Long Short Line 1.3126
 Most Important 1.3087 and 1.3101 vs 1.3134, 1.3142, 1.3151, 1.3159, 1.3176, 1.3183 and 1.3192
 Bottom. 1.3061 achieves by 1.3094 and 1.3077
 Upper target 1.3192
 Continuation fail 1.3159
 break Point 1`.2779
                 USD/GBP
 Long short Line 0.7618 or 1.3127 GBP/USD
Most Important 0.7525, 0.7571,  0.7649 and 0.,7679 = GBP/USD 1.3289, 1.3208 1.3073 and 1.3022
vs above 0.7627, 0.7637, 0.7647 and 0.7652 Or GBP/USD 1.3113, 1.3094, 1.3077, 1.3068.
Bottom. 0.7579 achieves by 0.7578 and 0.7586. Or GBP/USD 1.3194, 1.3196 and 1.3182.
Upper Target 0.7657 or GBP/USD 1.3059
Continuation fail 0.7637 or GBP/USD 1.3094
  Higher GBP/USD trades as GBP/USD and lower trades as USD/GBP.
 if GBP/USD hits 1.3059 then it trades to USD/GBP bottom. USD/GBP trades from 1.3059 to 1.3095
 The USD/GBP aspect is taking the example to a degree not necessarily required and a bit more explanation required.  As the main point is a day trade is the relationship between the currency pair and its opposite.
         Brian Twomey

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