Weekly breakout could be exploited

GBPMXN (weekly) chart is showing some interesting features, which lead me to be long on lower time frames.

• There is some sort of triangle, wedge, or pennant following breakout.
  
• The pattern is holding above a level of support (at this time).
  
• Based on experience, this creates a probability for further moves north.
  
• The Aroon is showing that the bulls are still in control, creating a probability for greater time-momentum.
  

The above does not mean it cannot break down catastrophically. Every probability in one direction also leaves a probability for the opposite direction. A stop-loss is what limits loss if price moves against my favoured direction.

I do not know what the future will bring - as I have no crystal ball. All I can do is take a controlled acceptable risk. I'm long on a daily time frame with this (which is not advice to others).

GBPMXN is one of those that is very wild and often disobeys some of the rules of technical analysis. So extreme caution is required.

تعليق:

تعليق:

It looks more like a flag now. Price has come into a daily level of support. This seems like an opportune moment to go long with an acceptable stop-loss.