July 15 2022
Using Support and Resistance
A Break of Support GBP 1.1850
We mention often in trading about breaks of support and resistance. Yesterday point & figure saw a break of 1.1850 to the downside. The broad forex market was USD bullish at the time. This does not mean we should throw caution to the wind.
The break was confirmed by trading at 1.1840 and then a failed retest of 1.1850.
Followed by a drop to 1.1820, where the GBP attempted to form a base. However, the recovery stopped at 1.1840 and reversed lower. We sold on the next down leg. Our Stop loss was 1.1860 the target 1.1770.
Point & Figure charts show you the breaks of support and where to put you PT and SL in order to maximise your profit, and minimise your risk.
However after the lows the recovery back above 1.1810 triggered a Buy at 1.1813. Unfortunately it hit my stop in New York trade. Even though the direction was probably right for the close of business and asian open. My timing was wrong.
Good Luck when you trade, contact us at email@example.com to learn more.