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GBPUSD Reached The Blue Box And Rallied

In today’s blog, we take a look at how GBPUSD entered the blue box area as it completed a pullback and rallied afterwards

 As shown in the 1 hourly chart from July 19, 2021; GBPUSD rallied up from purple wave (a) lows, and completed the purple wave (b) at the peak on June 01, 2021. Within purple wave (b), we see a subdivision into 3 swings, labelled white a-b-c. White wave c unfolded as an ending diagonal.

Down from purple wave (b) peak, the pair shows four completed swings lower, pending the fifth swing to complete purple wave (c). The end of purple wave (c) simultaneously marks the end of green/minute wave x. Green wave x was expected to end somewhere within the blue box area, before the pair could rally for green wave y.

 The chart below is from July 30, 2021. In it, we see that indeed the pair traded lower into the blue box to complete purple wave (c), thus green wave x; before a sharp impulse to the upside unfolded as anticipated.

The sharp impulse is proposed to be in the micro (blue) degree, and appeared to have completed 5 swings higher for white/subminutte wave i within purple (a) of green y. In other words, green wave y is expected to unfold as a purple (a)-(b)-(c) zigzag.

 Currently, the pair is expected to correct lower in white wave ii before more upside can be seen. We would expect the pair to break above the peak or white wave i in order to confirm the next leg higher in white wave iii. Lest, it gives us a double correction or a larger correction lower in ii before rallying higher. We prefer the long side on this pair, and shall be looking for dips for more long positions.

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Longevity in Trading Financial Markets

 In this post, we shall be looking at longevity in trading financial markets such as the forex, commodities, futures, stocks and similar markets. Whether you have been in the market for a week, month, year or even 10 years, this post could come in handy for you.

The blog looks at the importance of staying long (longevity) in the markets, and how that can be attained by following four, clear and simple steps.

  What is longevity in the markets, and why does it matter?

 The Oxford Dictionary of longevity is “long life, the fact of lasting a long time”. During the formative stages of a beginner trader, one is usually highly motivated and excited by the enormous opportunity presented to them, which has a huge potential for generating wealth.

Motivation and excitement can be a double-edged sword, which on the one hand make one to want to do learn how to trade with view to making money; while on the other hand could render one susceptible to the “demon” of instant gratification and possible low levels of endurance in the process of learning how to trade.

When one finds the learning process challenging, or the actual application of the lessons learned in trading petrifying, one could end up either incorrectly implementing the learned lessons and the strategies, or not implementing them at all.

It is especially during drawdown times that one needs to remain resolute, and soldier on in the journey of trading. Not easy right? I know!

It is thus very important to learn “tricks of the trade” with view to enhancing the probability of staying for a long time in the market, and making tons of money of course!

 How does one achieve longevity in trading financial markets?

Step 1: Find a trading system with proven winning edge

 As there are many trading systems and strategies, it is crucial to find one system that has a winning edge’ wherein the winning trades outnumber the losing trades in a given period of time. The entire learning process aims to produce an outcome where one finds a suitable system with a winning edge.

  Step 2: Manage your risk

 Trading financial markets naturally comes with the risk of loss of money which can be quite uncomfortable, frustrating and discouraging. Managing risk entails defining a level in the market where one decides to exit a losing trade.

This level is usually an integral part of the trading system that one adopts in step 1 above, and it is at this level where one knows they were wrong in their analysis of the market direction given a certain time period. The amount of risk is usually limited to 2% (per trade) of the total capital invested.

  Step 3: Trading psychology

This aspect of trading involves personality traits such as patience, resilience, greed, fear, confidence and such other traits. The previous two steps, if done properly; will enhance the positive traits of a trader’s psychology.

For instance, if one manages their risk properly, the trait of fear when trading becomes minimized. If one has a system that has a good winning edge, the trait of resilience during drawdown period is positively enhanced. And if on the other hand, one does not manage risk properly, fear could become the order of the day each time one takes a trade. I have found literature on trading psychology very helpful in this regard. Books such as “Bullet Proof Trader” by Steve Ward or “The Disciplined Trader” by Mark Douglas can be quite a good investment.

  Step 4: Commitment

Remain committed to steps 1 through 3 above!

As mentioned elsewhere in this document, motivation and excitement are transient and therefore short-lived. That’s where commitment is required.

  Tips for longevity in the markets

· Be patient with yourself during the learning process.

· Never stop learning

· Do not be an island, find trading mates

 Click here now for more at and learn more “How to Attain Longevity in Financial Markets” plus much more!!!trading financial

  EURCAD TO CONTINUE TRADING LOWER WITH SHORT TERM TARGETS AROUND 1.4450

From 31 July 20 EURCAD has been trading lower in what appears to be impulse 5 waves that’s is clearly visible on the below 4Hourly chart.

The pair traded lower ending wave 1 in green (Minute) degree with a leading diagonal at 1.542 before we say a 3 wave WXY correction that ended wave 2 of same degree at 1.578 on 22 Dec 20. From there EURCAD found sellers in a Strong 5 waves impulse proposed to be wave 3 of same degree that lasted almost 4 months with over 1000 points, and ended at 1.472 on 01 April 21 swing low.

The pair bounced higher again in 3 waves proposed to be wave 4 that ended 1.519 before it found sellers again. Now lets have a clear view on the 1Hourly chart below.