GBPUSD “Out of Bounds”

“Out Of Bounds” A 240 minute chart takes price up out of the range of a Modified Schiff Fork. ============================================== A trick to reading price is as follows- -When price moves up and creates an inside bar -I place a channel box the width of the inside bar. I watch for the subsequent bars to open and close in that channel box range. When the first bar moves out of the range I look for a close out of the box and set up on a tick chart a potential fork trade. The following charts visually show what happened this am.

240 Minute Chart and Fork Price is enclose by a modified Schiff fork. Price rose to the Upper median Line of the fork and then created an inside bar. The width of that bar from high to low makes up the white rectangle seen on the following chart. When price rose to its high (1.6488) I was waiting to place a fork and to enter the trade short knowing the pull back to the consolidation would happen in an attempt for price to rebalance.

240 Minute Chart with Modified Schiff Fork

377 Tick Chart Noting this am that price was “out of the 240 box I was looking for a shorting opportunity when the new 240 bar opened at 0700 mst the “hunt” is on. A price pivot at gave me a base to short from. The first entry was made and eventually stopped out positive. Another entry was made as seen on the following chart.. The price pivots are red horizontal lines. An Andrews Pitch Fork is seen on this chart and the stop, stop management, entry and stop out are labeled also. Of interest is an insert to the chart showing the 240 minute bar and it encompasses the move short.

377 Tick

Conclusion A simple method to pick up some pips. Looking for an opportunity of an overstretched market and boxing it in with a fork is a great way to see a potential target or limit level. The Price pivots = great price structure, a great way to trail a stop.