The first thing I want to mention here is I think we all sometimes fall into the trap off over complicating our charts, would you agree? Trying to make it seem like we have some kind of super power and magical edge to predicting where the market is going to go. However what we commonly find time and time again is the simplest off approaches to the market (with the correct knowledge) often reaps the best rewards.
I know I’ve been guilty off this. I think you’d be lying to yourself if you said you haven’t been there also.
The biggest lesson is with the above in mind is keeping it simple and patience tend to prevail more times than not.
Take our analysis on Gold above.
All that is present on this chart is some basic dynamic support – correctly identifying key area’s of structure in the market and the phase that price is currently in. (Impulse, Correction, Consolidation)
Then add in a little bit of fun and here we have our own little red light green light green system.
Green light is the market respecting our support / structure and we can look for a trade.
Red Light is the market breaking out and this is where we can have our most probable set up coming from. Wait on that green light with a test of pre-determined structure and pull the trigger.
Identifying everything in the chart can be achieved with ease, just don’t like your mind get in the way.
As always guys leave a comment below on your thoughts on this pair and give me red light or green light for this post!! :)
The Fx Chartist
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