As with all great trades, we require a trading plan. This is a perfect example of how to analyse, execute and manage your trade. See linked chart for the initial trade idea.
See below for a step by step guide on how we entered this trade and what we looked for.
Goodluck and trade safe!
For every currency pair, all the price action can be broken down into 2 different waves. Impulse waves and corrective waves.
Both of these waves have the same patterns within them such as flags, ascending/descending corrections, channels etc.
The tip to finding out what phase we're in is to zoom out to a bigger timeframe and look at price action as a whole and...
I've spent around 9/10 years trading with technical analysis.
I used to spend 2/3 hours on a weekend and easily 1/2 hours each day on the screen - that doesn't include the amount of times I'd be checking from my phones on and off throughout the day too!
So add that all up - its 620-700 hours per year.
We trade for freedom and time - not to spend...
UPDATE: GBPJPY ANALYSIS REJECTION. Beautiful trade today with an easy R:R of 1:4. This zone had formed on Wednesday and we had waited for price to return to this area. As you can see it was a really power zone sending the price back up.
Yesterday analysis playing out nicely. We have now entered as planned on 137.200 with a 20pip stop loss. The plan is to hold the trade for full 4 days for R:R of 1:8. Please check out my analysis yesterday for this.
Price broke below the support we highlighted, however as there was no lower wick on the 1h breakout candle, price had no clear range to move down, so instead of moving to the lower timeframes to look for selling confirmations, I stayed on the 1h timeframe and decided to look for a break and retest setup, as it was not on a lower timeframe my confidence for this...
Pleased share some back testing results on the H4 timeframe across some xxxjpy pairs, mainly GBPJPY.
By testing H4 we have access to more data in time, so this video shows testing from 2007 with over 1000+ trades , so a substantial back test in my opinion.
Entry is clear - we just follow the entry on screen
Exit is clear - 3 exit options
- Stop Loss...