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TFC Commodity Trading Forum

Walking the Line & Thinking Differently *PIC*

I have learned many things while conducting our Live Market Exercise for our clients and the most important is expect simplicity. Today we focused on GBPUSD for the same reason I focus on most markets, because it was aligned on its higher time frame trends. From there it’s just a matter of waiting for a price dip to support and staying patient. Lately the markets have had a tendency of walking the line – holding a support level and then walking along it -- and the play is as simple as buying the line the 2nd time down, after it holds the first time. The line can be a pivot, a directional line, or a retracement, or a confluence of all. The key is making sure those higher time frame trends are aligned. After providing the dip to support at 8 AM EDT, and giving us a nice little rally to the even figure before the Bernanke speech, price kept to that simple pattern and dipped to the same support level once again– our 4-hour directional line -- before bounding all the way up to Pivot R1 at 163-28.