SELLING GBP/JPY from 1.9268 (again! for the 4th time this week)
Pivots are the most significant indicator for how I trade.
I cannot understand why EVERY trader, no matter what their approach is, wouldn't use weekly pivots.
The beauty of pivots is that they are the ONLY indicator that is set at the start of the week so you know where the price is in relation to the pivot days before the price gets there.
This week on GBP/JPY we have seen price hit the WR1 (Weekly Resistance 1 key pivot level) 3 times and I've shorted the pair each time and banked shed loads of pips.
Price is back at WR1 for the 4th time this week and as we KNOW there are SELLERS at this level then SHORTING this pair again is a no-brainer.
No other analysis is really needed though we do have other SHORT confirmations with the red SELL line of the Andean Oscillator rising from 0 on H1 and both RSI and MACD are declining.
The only question is - where do I bank the profit?
The 200 EMA (H1) has been a bridge too far for GBP/JPY BEARS so I'm setting my t.p. at 192.00 though if the momentum is strong and the BEARS are pushing to break thsi key level then 191.31 would be the next target which would be WPP Pivot and this sits above the 200 EMA on H4.
With all that said, this is forex and there are no guarantees and anything can happen.
We could see another drive back to WR1 so we still need to get the position to break even as soon as possible and then if the price does head back north we would look to SHORT from however high the BULLS push the price but I can only see SHORT trades for this pair for the rest of the week.
I cannot understand why EVERY trader, no matter what their approach is, wouldn't use weekly pivots.
The beauty of pivots is that they are the ONLY indicator that is set at the start of the week so you know where the price is in relation to the pivot days before the price gets there.
This week on GBP/JPY we have seen price hit the WR1 (Weekly Resistance 1 key pivot level) 3 times and I've shorted the pair each time and banked shed loads of pips.
Price is back at WR1 for the 4th time this week and as we KNOW there are SELLERS at this level then SHORTING this pair again is a no-brainer.
No other analysis is really needed though we do have other SHORT confirmations with the red SELL line of the Andean Oscillator rising from 0 on H1 and both RSI and MACD are declining.
The only question is - where do I bank the profit?
The 200 EMA (H1) has been a bridge too far for GBP/JPY BEARS so I'm setting my t.p. at 192.00 though if the momentum is strong and the BEARS are pushing to break thsi key level then 191.31 would be the next target which would be WPP Pivot and this sits above the 200 EMA on H4.
With all that said, this is forex and there are no guarantees and anything can happen.
We could see another drive back to WR1 so we still need to get the position to break even as soon as possible and then if the price does head back north we would look to SHORT from however high the BULLS push the price but I can only see SHORT trades for this pair for the rest of the week.
Trade closed: target reached:
Target of 191.00 reached - 168 pips banked