Brave Heart of GBP/JPY

Just for the record, the fibs not only serve as support and resistance levels, but also profit targets once you have decided to enter a trade based on price action. As I type, price has broken the red 61% fib and is headed towards the blue 61%. A great short trade made from the blue 50% fib.

Aren't we supposed to draw fibs from price top and bottom, therefore I am asking you what is your "blue" fib based on? Why those price levels? Thanks!

Price made a bounce from the blue 61% fib.

I use whatever works!! Orthodox or Unorthodox. I've come to see that often price responds to symmetry from a previous range. Look at a chart, find a significant trading range, draw fibs from the high to low, and just flip it to the upside or downside. It isn't perfect due to the fact of not knowing which fib level price might bounce off (if any), but it works enough times to make some money!! Doing this on the larger time frames yields the best results.

Check out what I posted in the USD/CAD Trend Reversal thread to see another example.

The blue 76% fib has been reached. If price is to reverse, it won't go much further below this level. I would say 10-20 pips at most, if that.

There were some good opportunities to make pips on this pair before the move down. Price had formed a head and shoulder pattern on the hourly and made some bounces off a resistance level and key fib levels drawn on the pattern. These points are encircled on the chart.

Since price broke beyond my 10-20 pip barrier I have a bias for continuance to the downside so the blue 76% fib could serve as a resistance level now. However, I will leave room for it to reach the 50% level between the two fibs (76% and 61%) at 238.03.


UPDATE: Instead of just 238.03, I'm aiming for a reverse high of 238.00 - 238.20.

Well, it seems I was incorrect on the continued downward movement earlier. However, I was correct on the reversal high range for the short term. It actually just overshot the specific high I had pinpointed (238.03) by about three pips.

After doing some further analysis on the pair I saw signs of why price wanted to go higher. On the reversal, I would say the 76% didn't hold on the way back up is because it didn't serve as a significant point of support. The chart below is the intial chart I posted. I've brought it down to the hourly so it can reflect the head and shoulders pattern I mentioned in another post. The purple fibs are drawn between the blue 76% and 61% and the white fibs are drawn on the head and shoulders pattern. I've encircled all points where there were potential trades, including those I've already mentioned.

Price is looking good for further upside movement. I'm setting a minimum target for the 23% fib on the head and shoulder pattern.

2HR CHART

TARGET ACHEIVED!! (White 23% fib @ 239.41)

the price arrive astrong resistance around price 240.00 ON 61.8% FIBO
enter short
TRGT 239.10
S/L 100

the price now is 240.25 is more suitable for short

i entered sshort from 240.15

Short 240.05 nearly missed it

seems we have support piont @ 239.40 on 1h TF ....
if the price cuoldn't break it down to 239.10 on our TRGT may we will change TRGT from 239.10 to 239.40 ...
but now i see it is better to be satisfied with 85 pips or less guys

Hallo Pips!

Out at 239.57, had my managetp on and somehow the settings, as I changed them to your new target, were mixed up a bit. Very good ride indeed. Thank you for the green pips.
Maybe your initial target will be hit also!

Greetings!
Gnat

i got out @ 239.40 with 85 pips profit.............
congratulation guys we got the little rascal

You may say so! Oh yeah!

Pips... are you on holiday?

Thank you Gnat. I was wondering where everyone went. Watching trendlines here...