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Bearish on GBPAUD

Market Analysis - | 27 May 2019

Strategy analysis

The Guppy Multiple Moving Average is used for directional strategic analysis on daily chart.

The long term group of GMMA averages  shows compression and is turning down.

The short term group of averages,  used as a proxy for the behaviour of traders, confirms a continuation of the downtrend break.

There is a high probability that price will continue to fall and test support near 1.8146.

In this environment traders might consider using tight intraday stops on candle wicks using an indicator such as the Traders-ATR short on a smaller time frame.


Application of the 5 day average range calculation gives a range of 161 pips.

Based on a reference point of 1.8346, the  ANTSSYS method places 75% of this value at 1.8225 below the reference point and 1.8476 above the reference point over the next 24 hours.

 

Analysis by Daryl Guppy from Guppytraders.com.

 

About Daryl Guppy’s GMMA and ANTSSYS Lite method

This indicator was developed by Daryl Guppy and a team of FX traders. It is available on the AxiTrader MT4 platform. ANTS Lite system trading is applied to FX markets and to E-minis on the DOW and S&P. There are three steps in the ANTS Lite entry set up:

  • Highest value of 5 day ADR values
  • Compression in the short and long term GMMA
  • Confirmation from ATR values

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 ATR signal. There are 5 conditions in making the entry:

  • Wait for breakout
  • Do not chase the breakout
  • Enter on retreat and rebound
  • Best is at edge of GMMA
  • First stop is ATR value

Once entered the trade is managed using an ATR  stop loss and calculated trade targets.  

 

The information is not to be construed as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any security, financial product, or instrument; or to participate in any trading strategy. Readers should seek their own advice. Reproduction or redistribution of this information is not permitted.

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