I know I know. Long time No see. Work is taking its tolls on me. Don't have too much time left.I have been developing lately "trend following" systems and we have been backtested it for quite a while now. It seems to work. Needs to get stronger rules in money management as well as "pyramiding" positions. It's not that easy to compute.
And as good as a system may be, you always need strong rules.
Anyway, as I was running the system. Got one pick to "buy". EUR-GBP.
Believe it or not as I was looking at the chart, I see massive head & shoulder patterns on both weekly and daily charts.
My system still sees it as long-term bull move with a "bull" flag during which the EUR-GBP consolidates before resuming its uptrend.
To tell you the truth, I have had some hard time believing it. I see a massive head & shoulder pattern on the weekly and a tinny head & shoulder on the daily (which represents the weekly right shoulder).
As soon as it breaks the neckline, I intend to short the euro and long the GBP. Sometimes, you have to be against your systems as good as they have been historically. The uptrend could be broken pretty hard here.
Why?! Rates decision on the GBP? on the Euro?! Inflation?! Economies not as strong in Europe?!
You name it.
I follow the price action because this is what pays me. Talking about fundamentals makes me smart. Following the price pays me.
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