How to Trade

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.

GBPUSD Point & Figure Chart http://www.eightdragonscapital.com

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 support@8dcglobal.com to learn more.

Published by Neil Callard

Forex Trader and Educator. 30 years trading experience, of which 20 years was market making in major currencies in large international financial institutions.

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