Originally published by Guppytraders.com
After a very fast rally and a small consolidation pause the GBP/CAD is ready to continue its upwards move. This is how this bullish move can be traded using the ANTS method.. We start with the broad analysis and then apply the ANTS method to a 3 minute chart.
- The Stop loss at 1.6535
- Entry around 1.6573
- Profit target near 1.6712 plus
This is a continuation of the breakout rally following minor consolidation. Watch for fast rally continuation moves. Use tight stops to manage bullish candle wicks.
Traders look for their preferred indicator entry signals around 1.6573. Price action needs to be consistent with the direction of the trade. Calculate exit target using ANTSSYS method at 75% of 5 day trading range (228 pips). For improved results use ANTSSYS ATR stop loss method to follow the price trend.
The ANTS method uses intraday 3 minute tick charts.
There are three steps in the ANTS entry set up. They are:
Compression in the short and long term GMMA
Confirmation from changes in the range bar colour
ANTS entry signal inside the defined entry channel.
This is the classic entry condition for the GMMA. The long term and short term GMMA have compressed.
The entry confirmation is finalised with the application of the ANTS signal. There are two components to this. The first component is an entry range band. The second component is the ANTS entry signals. The entry signals fire inside the entry channel. These identify high probability entry points. High probability because there is a high probability that the trend will continue in the direction shown. This combination is very useful in eliminating most of the false signals. While the entry conditions remain valid, the ANTS system will continue to fire entry signals within the entry range.
There are 6 conditions in making the entry
Wait for breakout
Do not chase the breakout
Enter on retreat and rebound
Entry point inside the entry zone
Best is at edge of Super Guppy
First stop is edge of the entry zone
Daryl Guppy is a leading international financial technical analysis expert and special consultant to Axicorp. Guppy appears regularly on CNBC Asia and is known as "The Chart Man". Disclaimer: Daryl Guppy is not a financial advisor. These notes are for educational purposes only and provide an example of applied technical analysis.