BarroMetrics Views: Being Open to Market Information
One of the greatest dangers to trading success is myopia: having a fixed mindset of what the market is going to do.
Take a look at Figure 1.
FIGURE 1 GPBUSD 18-day Swing
We see that:
- We have an 18-d Whole Point Count (9 consecutive days at below ‘B”). And,
- We have a confirmed Head and Shoulders Change in Trend Pattern.
Conclusion: the market should head South, right? But because you pay attention, you see that October 12 was a small range day. Now that may be because it was Columbus Day, a holiday in the US, or it may be that the selling is drying up and we are about to head up.
You notice too that a conviction close above 1.5814 will trigger a 5-day Spring Change in Trend Pattern, and that would mean a line turn in the 18-day. This would mean a move to 1.6606 (on Oct 12. This price will change - see Nature of Trends) and because the 13-week trend is up, a conviction close above 1.6202 (see Figure 1) would mean an 18-day RePo (buy signal) with a minimum target to the 13-week Primary Sell Zone 1.7042 to 1.6878 (see Figure 2).
So a conviction close above 1.5814 means you need to close out your shorts and go long above 1.5814.
FIGURE 2 13-week GBPUSD
Or you could ignore the market information and believe that the GBPUSD would go down.
Figure 3 has the result.
FIGURE 3 13-week GBPUSD
The point I make is a simple one: keep focused on what the market is telling you and act accordingly.
Refer this blog post to a friend or colleague…
