Patience its hard but worth it

GBPUSD, H1

Sterling has been under pressure again this morning following the overnight recovery from yesterdays lows; GBPUSD fell to 1.4060, GBPJPY to 148.92 and EURGBP rose to 0.8797.  Cable looked to be moving lower again, the H1 10:00 candle was significant below the key 5, 9 and 20 moving averages for most of the hour only to close in the final 5 minutes over the 20 moving average at 1.4160. Earlier this looked like a key set up for a short position on the our H1 EMA Crossing Strategy.  The approach has two simple rules; the first  (1) is that the 5 and 9 Exponential Moving averages must cross and the second (2) is that the mid line of the Bollinger Bands should also be crossed. The approach works with the H1 chart and other intra-day time frames, but as ever, patience, discipline and control are required to implement it in real time. The challenge on this particular set up would be the patience to wait for the candle close at 11:00 and the discipline not to take the trade because the rules had not been fulfilled, even when for 55 of the 60 minutes of the candles formation, it really looked like a trade.  At 12:00 it WAS a trade with entry at 1.4159, target derived from the 14 ATR (15) at 1.4944 for a net gain of 15 pips.  Patience, Discipline and Control. 

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Stuart Cowell

Senior Market Analyst

HotForex

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