Today GbpJpy is not moving much (sideways). Still, there was money to be made according to Imran's system.
- SHORT : 5MIN entry @ 16:15 close of candle (210.48).
- My order got filled @ 210.44.
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- Price below 200EMA, 60EMA, Daily Pivot. Middle BB and lower BB were going down.
- MACD was signaling down since the 15:30 candle. It went up close to the 0 level but did not cross it. MACD went down from there and @ 16:10 it went lower than the previous low (look at no 3 in the chart). Now when MACD comes close or touches the 0 level and then bounces back, we expect a bigger mouvement than the previous one (this you should know if you have studied a bit the most used indicators since it is one of the most known characteristics of MACD).
- Stochs was signaling down @ 16:05 and was going down @ 16:15 which is the time of entry.
- The other indicators (no 1 and 2) are called Lag indicators and I did not invent or create them. I found them in ForexFactory. They help me have a more in depth idea of the market at a given time. As for no1 : I expect the blue line to go below the 50 line. As for no2 : I expect the blue line's trend to be signaling down.
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- Stop loss : 210.74 : the Daily Pivot Level.
- Now, last but not least since this is the step where most traders have a lot of difficulty taking a decision : the EXIT.
I chose to exit @ 210.00 (my Exit order got through @ 210.04). Why ?
- Well today there was not a lot of news (actually none) for Gbp or Jpy until the moment I entered the trade. Because of this, the market did not move that much. That's why I decided that the 210.00 level (which is a psyche level) was where I was going to exit my trade if it went that far which it did.
- Why not the 1st support level ? Because I found that level to be too far for a day where there was not much mouvement.
So that is it. I made a perfect 40 pips profit.
I chose to risk only 1% of my account balance which gave me a return of 1.33% (risked 30 pips and got 40).
That is it for me today, done trading until Sunday night.
Ciao to everybody