GBP/JPY for QQE Traders!

Quoting Nobitacu

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Little to no impact so far. I guess it's already in the price as others have said. So... I won't be entering anything, unless somehow a Buy confirms for me to enter. I already took +60 earlier... So I guess no lose for me today.

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Quoting fx_lane

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how is the back testing coming? My system wasn't really working yesterday only but I was only relying on fibs which I didn't understand but thanks to the call which was made I only confirmed and entered .usually like 100 pips and up. You are busy with sith lord I believe. Let me have a look at the twin system and see if it work on conditions like yerterday and

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Quoting Nobitacu

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Yup, So far so good on the trades with strategies I'm testing out with Sith using his Twin Brother. You really should give it a try as well. But I pretty much downloaded the indictors on Aus's blog, then worked with Sith on getting the settings correct and also with the correct indictors I needed. Also, I'm forward testing it, not backtesting it, since it's much different than what actually happens during live trading. So I don't believe in using backtesting, only live forward testing for me.

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Quoting fx_lane

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ouch that hurts I was going long and the price did the opposite... I thought cpi+ means price +

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Quoting venci

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Patience!!!!
The GBP dropped - it is understandable but the Yen is not yet broke the ressistance ..
then we will go higher
Remember that 5 pip difference from GBP/USD is 5 pip difference in GBP/JPY
but 5 pip difference in USD/JPY is 7 pip difference in GBP/JPY

The Yen is stronger and will bring us up

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Quoting mamr

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What! I thought stronger yen means paying less yens for each pound, which bring us down. again, I think!

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Quoting kujo17

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Morning boys and girls.

Well, my TPs that were missed by one pip late last night, were hit by +1 pip after I went to bed.

Now, we're ranging between the 38.2 and 0 fibs of the last littel move down.

Not good for longer term trades just yet, as she's trying to make up her mind.

With shorter TFs starting to cross up, the 1H is are it's 0 or 50 level depending on your indicator types.

But, with lower Highs and higher lows, she's working herself into a wedge.

A breakout is in order for sure.

Which way ?

South, with a break of S1 I'd be ont 207.8 area, S2.
Then, a start on the move up.

With the 4H still down, I'd say SOME downward is still possible.

Once the 4H moves UP, we'll see some up momentum for sure.

She's testing the DP as we speak, but she did that 3 1H bars ago and then dropped right back down to S1.

Lets see what happens over the next few yours.

Maybe a slight push down, so we can BUY, for Triple interest Weds...?

kj

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Quoting venci

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GBP/USD * USD/JPY = GBR/JPY

STRONG USD means GBP/USD -down, and USD/JPY - up

i mean YEN is stronger than GBP in this equation because

USD/JPY GBP/USD GBP/JPY

for example 108.00 * 1.9400 = 209.52

if we have difference in USD/JPY 5 pips --> 108.05 * 1.9400 = 209.61 - (9 pips)

if we have difference in GBP/USD 5 pips --> 108.00*1.9405 = 209.57 - (5 pips)

so. The YEN has more influence in GBPJPY than GBP

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Quoting Pips_Cruiser

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I think this might be mixing apples and oranges, and confusing the issue. If someone said that for G/J, a 1 pip change to U/J is worth almost twice as much as a 1 pip change to G/U, I would definitely agree. But if they say the Yen has a greater influence on G/J than the Pound, it doesn’t come across quite right.

Remember that the only reason a 1 pip change to U/J carries such weight in G/J, is because it’s multiplied by almost 2 (the dollar value of G/U). So in a very real sense it’s the value of the Pound that gives it that additional weight in the G/J calculation.

Because of the difference in decimal places and the value of the Yen, a 1 pip change to G/U only gets multiplied by about 1. So in this way of looking at things, it’s the low value of the Yen (approximately one U.S. cent) that is making pip changes to G/U worth less when translated to G/J.

Which currency has the greater influence? It all evens out. The G/J exchange rate is a fair and equal balance of Yen and Pound values, using the USD as an intermediary. Neither currency has more influence or strength than the other.

Which currency pair has the greater pip value, when translated to G/J? Definitely a 1 pip change to U/J is worth more. But again, that’s largely because it’s multiplied by the value of the Pound, not because the Yen has greater strength or influence.

Hope this makes sense, and that you have a great trading day!

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Quoting pearsonfx

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I agree with you but I also disagree....the U/J does have more influence on G/J BUT it takes more to consider than U/J moving 5 pips and hoping G/U doesn't move.

The fact that on U/J, the dollar is the base currency, and on G/U is not, makes ANY news or movement in the market related to the dollar a tug o war battle between G/J. U/J moves up, G/U moves down, IN RESPONSE TO THE DOLLAR.

Now in this tug o war battle having said that, if G/U and U/J were to move in opposite directions AT THE SAME RATE, G/J would follow U/J at a lagging pace.

This doesn't account for the fact that if there are GBP and JPY news or market movers as well.

BUT in terms of historical movement, you are absolutely wrong.
The correlation between movements on G/J in relation to G/U on the 1 hour chart is 52.7%, meaning that 52.7% of the time on the 1 hour chart, G/J is doing the same as G/U....If we move to the Daily chart we find that the correlation moves to 80.1%....a much higher correlation, but on the daily chart.

The correlation between movements on G/J in relation to U/J on the 1 hour chart is 70.9%, meaning about 3/4 of the time, U/J and G/J are the same on 1 hour. This is MUCH higher than that of the 52.7% that cable sees. When we move to the Daily charts with U/J that correlation again increases to 96.6%...THAT is pretty darn close to doing the same thing almost all the time...

SO historically speaking YES U/J and G/J are much more highly correlated...BUT G/U ALSO has a high correlation, just not as high.

What does this mean, it means that U/J does have a stronger influence over G/J providing that G/U isn't dropping or rising like a banshee.

What else does this mean? It means that in no way shape or form should you analyze U/J and take a trade on G/J as well, you will get burned. the correlations are not 100% for a reason, G/J although being influenced by two major pairs, also is a currency in and of itself. It is not necessary to even LOOK at U/J or G/U when trading G/J, or compare them. The benefit that i see, is that if you can't seem to find a good entry point or exit point...look at G/U and U/J, maybe one of them is about to slam into a pivot point. which would cause for a temporary set back, very rarely does a yen pair ignore a pivot.

In this regard I agree with you....don't get fooled into thinking that G/J follows one or the other all the time. It will follow one one moment, and the other the next.

Here is where I got the correlation info for those that are interested.
http://www.mataf.net/en/forex/tradin...elation/table/

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Quoting kujo17

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1H has been in a Descending Triangle for a bit now.
Upper long term TL is holding her down.
Bottom TL is holding her at bay, just above S1.

CCI, QQE and Stoch on the lower TFs are all down.
Turning down here on the 1H now as well.

Everyone has their LONG 3x swap, so we can go short now.

209.05 has be touched 6 times and not broken.
Upper TL is pushing it down.
Also, the 50Fib line of that retrace has been working as hard S/R area.

We're below the DP and bouncing in between 50 and 61.8 fib areas.

With a breach of 209.45 area, we'll probably see 209.05 again.
A breach of that is 207.72, with some minor Support to chop through on the way.

Don't think we're long just yet...... until a 1H breaks that upper TL, or is rejected at the bottom again.

Time will tell. Trade what you see.

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