By: Adrian Friggieri
The major resistance at the 1.6050 area has again held very well keeping cable into the larger range and not allowing a potential new high. Possibly there might be a pullback again down to the 1.5750 area as this seems to be the most sensible way forward in the next days after this turn at the 1.6050 zone. With the ultra high volatility of the recent days cable is sure to make the scene a worth watch and one should keep a close eye to this movement.
Loads of pip potential of course but also lots of loss potential as usual associated to the risk of high volatility. However even if you drill down the daily charts one would easily notice that although the numbers are high the patterns remain the same. Does this possibly help you get thinking? I hope so. As the saying says, ‘history repeats itself’ so do the charts. One sometimes is lost into creating systems into systems trying to catch the ultimate trade and predict the charts. Have you ever thought of trading the charts?
It is much more worth it both financially and emotionally to learn to understand the price movements rather than try find the ultimate crystal ball system. Pointing out of course that I am not saying you do not make use of charting tools and indicators of course. I would use them less and for specific information rather than for the bigger picture. Possibly one can understand that trading is mostly a mental game. Our mind is programmed to work in a way and of course if something goes wrong we are sometimes unable to react fast enough.
Trade what you see and collect pips all the way!