GBP

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jago25
Trader
Posts: 89
Joined: Fri Oct 25, 2013 5:23 am

GBP

Post by jago25 »

I've heard GBP referred to as the Devils Currency.

Thought I'd try doing some live backtesting last night. I found that with GBPUSB and also GBPNZD the GBP pairs seem to have their own personality, a personality that could be a great proving ground for CaptainJack's method.

There's definitely something fishy going on with GBP. It seems to work like this. First, they reel you in. Then they establish levels. Then they attack you to cut that emotional scar memory into the market. Then, the next time this level comes around they capitalise on this. There are still sometimes the 3 levels, M's and W's but these tend to happen only twice and (I need to confirm this) on the 3rd time that's when it turns on you. The bad thing is that there are no machine code-able pattern but the good news is that I didn't find myself guessing and double guessing - the fox seemed predictable.

I think the key to getting confidence could be looking for those pins. What I will need to do now is search for those pins and see if there's a correlation to where the pins are appearing and unexpected moves.

If we can find a pattern this could be a very profitable fox to pin ourselves to, like following an ambulance in rush hour.
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Jacque
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Posts: 58
Joined: Wed Oct 09, 2013 5:09 am

Re: GBP

Post by Jacque »

Hey jago, why don't you post a chart and we can start a discussion ;)
Jacque
jago25
Trader
Posts: 89
Joined: Fri Oct 25, 2013 5:23 am

GBP

Post by jago25 »

After reading volume spread analysis the things that I'm noticing here make a lot more sense.

In short, you can guess what the BoE are doing from how much volume you see within such a range of price. So you get pins around areas where the obvious thing is less likely to happen.

But you also get bigger moves down just before a trend up begins.

Perhaps this means that the BoE likes to injects it's cash when a trend up begins?


Hope this helps

-j
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