Daily GBP/JPY analysis

Well done MarkH. Good work.

Thanks Olu! I would like to share my results with you guys, so look for more.....

I'll look out. More than anything can we see charts and explanations please. Once again well done

Olu

I will do it Olu, no problem. Love to help out fellow traders...

Looking for a pullback in H1 the trend before going only long. No short positions in an upward trend. Use your 1M and 5M charts to identify channel bottom, Bollinger Band extremes and RSI extremes. Also, check your Fibonacci relationships.

MarkH,so it looks like the entry point after retracement is around 126.20. Is that correct? Also how would you identify your take profits and stop losses

Hello nikim,

I think the point I was trying to convey is that it may begin retracing or it could break out above 126.20. As we get closer to that point in time, we will get a clearer picture. As of now, I have no trades on, sitting out to see if there will be a trend change. I will definitely be here on the board when I place my trade(s).

But for now, it's too risky to get in.... Again, it's about recognizing the channel boundaries and recognizing a change in trend. I think we are at a crossroads right now and the trend could be changing to back down.

Notice when the trend change occurred in the Red channel to the Green channel. Buy when;

(a) Prices are at the bottom of the channel.
(b) Only buy when all channels in 1M, 5M, 15M 1Hr and 4Hr are all headed in the same direction. Up or Down.
(c) Only trade when 5M RSI is at it's extreme. Between 25-30 for buys and 70-75 for sells.
(d) Only buy or sell when price hits it's an extreme in the Bollinger Bands.
(e) Only buy or sell in the direction of the channel while observing Fibonacci levels. i.e. only go long when channel is up and price beaks above 23.6% Fibo.

I look at my 5M chart for the actual trade, and I look to my 1M chart for the exact timing. I use both at the same time. I start my trades with one trade at .50 lot. As the trade goes against me (they will and do since you can never seem to get them timed perfectly or in profit on the first entry. I then begin adding lots as the price moves against me, usually no more than four trades. So....1st trade .50 lot, 2nd trade 1.0 lot, 3rd trade 2.0 lots and final trade of 4.0 lots. Notice I always double down. Once my trades are set, I let them go. Then I set my EA to close when all trades create a composite profit of say.... $5,000.00. I do not use a price level to dictate the closing of trades, I use a dollar amount. The EA closes the trades (usually while I'm sleeping).

ALL of these things have to be in place for a trade. No exceptions. It takes patience, but as you can see by my trade history, it works!

Took my trades last evening as the price was breaking above the 126.20 area. Nice profits for the pair....

Looking for another re-entry point. Bias toward Long positions remains in tact. 1Hr. upward trend channel remains in tact. Statistically, price pressure loses steam at the 50.0% and 61.8% level. Look for a breakout above 50%, if not, it goes lower.

I would not be short at any time in this channel....

Downward trend.....but when will it resume?

It looks as though the price action may be running out of steam. Price bumping up against 4hr. channel, RSI is high, price is at the top end of the Bollinger Bands. If pricing drops below RED channel, it's a short. If not, it breaks out of the channel and moves higher, next stop 61.8% Fibonacci marker. Just like last nights trade, we will have to be patient.

Still waiting....

I really like trading the GBP/JPY, it's my favorite pair. If anyone has any questions, I would be happy to help.

I like the way it's shaping up....

Again, notice the GREEN channel....

Preferably, I'm expecting market to perform a bearish retracement trend scenario to complete corrective wave b either in yellow or aqua. A breakout to the pivot critical line and lower red trendline would bolster to this scenario. Otherwise, I believe we may see a "bull trap" pattern in white. Good luck.

It's too early to tell yet. But we'll know shortly....

Getting some action now...

Getting ready...

I'm sitting it out with patience as I let this trade come to me...

Two trades on Short. Breaking downward out of the Red box..... Short 6 Lots @ 126.550. Looking for a target profit of about $7K.

See you in the morning....

See image....