Hello Guys,
We have a nice set up of over 2500 pips that is setting up on the GBP-JPY Daily chart. I am a Fibonacci trader who uses Renko Charts and Ichimoku Cloud. A look at the attached chart shows that the Daily has made Triple Tops at 146.97 as shown by the black line on my chart which draws these tops for me so that I don’t have to hunt for them. They are there in front of my eyes, saying Hi Mr Trader! Which is the very basic approach of Ichimoku… you should be able to see your trades with just a glance. I also use Fibonacci to see where these tops are building up and what the targets are for these tops. A look on the chart shows that the tops are building up at Fib. This is a traditional turn around level along side Fib for deep retracements. With that information, the target for a Fib retracement is Fib extension, +2500 pips from Fib. How are we going to trade this? The job is very simple. As an Ichimoku trade, I am waiting for the Daily to close below my cloud as a confirmation that the bears are now in control of the market. Note also that I use a 45 degree counter trend line as an additional confluence to tell me that the current retracement is over. Price will close below this counter trend line at the same time it is also closing below the cloud. Once this has happened, I will then move on to the smaller time frames where I will place my entries. I use the 60 and the 240 charts. On these time frames, again, I will wait for Kumo breaks to the downside and short these until I get to Fib, 119.63. Do not try to sell this set-up until price has closed below your counter trend line and for my Ichimoku traders, wait until the Daily is under the cloud. Keep in mind that nothing is guaranteed in this or any other market. Price is still above the cloud, which means buyers are still in control. They might as well drive the whole thing up to Fib. They love this level. Watch out for Fib. This is a traditional level for Double Bottoms which may cause another deep retracement, especially if they have not visited Fib. But in this case, this may not happen as they have already broken the Fib level before they retraced back, an indication to tell you that when we are coming down, it will be an express train. Watch out also for Fib. They love making u-turns here that normally find resistance at Fib before they resume towards the Fib target. Hope this helps. Happy Trading to you all.
Comment:
Sorry guys my fib level values are missing for some reason but the are Fib 0.382, Fib 0.236, Fib 0.382, Fib 1.382. They might as well drive the whole thing to Fib 0.236. Watch out for Fib 1.00. Especially if they have not visited Fib 0.236. broken Fib 1.00. watch out for Fib 1.272. find resistance at Fib 1.00 before they resume towards the Fib 1.382 target.