Let us consider the GBP/USD currency pair on the H4 chart. The price has breached the triangle's upper boundary and continued moving within the Donchian bullish channel. To be noted, ParabolicSAR historical values confirm the trend as well. At the moment we see the fluctuation near the historical resistance level at 1.51705. Market participants are supposed to wait until the bar closes above this mark.
RSI-Bars supports our assumptions. The bars direction corresponds in general to the major trend on the chart. Conservative traders are recommended to wait until the H4 bar closes above 1.51705 (the price should consolidate over this mark) and to open a buy position immediately. Stop loss may be placed at the latest fractal support at 1.50237. This level is confirmed by Parabolic historical values and the trend channel support line. After pending order activation, the stop loss is to be moved every day near the next fractal high, following Parabolic signals. Thus, we are changing the probable profit/loss ratio to the breakeven point.
|Buy stop||above 1.51705|
|Stop loss||below 1.50237|