Well, seems like GBPJPY is going to be back at the major channel. If it falls under 143.700, it will be a good short opportunity. I will enter if the bar closes with a good size, an 'ATR (10)' size or bigger, bellow 143,762.
On the other hand, if it goes above 147.050, same scenario, strong bar closing above 147.050, size around ATR (10)... It can be a good oportunity of a long position, due too the price could be drawing a major trend reversal, as it broke and is insistently testing the channel.
I am thinking to take both trades. First, I am going short, as the price have been bouncing back less and less above the support, making lower highs and the previous sell bars have been stronger, showing a clear bear power. IF, AND ONLY IF it goes up and stop my short position, I will go long, as I am setting my stop loss order on the exact place where my short trading idea stop being logical and a long trend might be in course. To be honest, I would go long only above 147.525 and with half of my size or maybe a third of my size. Full hand only above 149.444 with target @ 154.900 and stop @ 147.500. Always with those principles, strong bar on trend side, size of the bar should be similar to ATR (10) and it should close after support or resistence. It's to show me who is winning the 'tug o' war', bears or bulls.
On the other hand, if it goes above 147.050, same scenario, strong bar closing above 147.050, size around ATR (10)... It can be a good oportunity of a long position, due too the price could be drawing a major trend reversal, as it broke and is insistently testing the channel.
I am thinking to take both trades. First, I am going short, as the price have been bouncing back less and less above the support, making lower highs and the previous sell bars have been stronger, showing a clear bear power. IF, AND ONLY IF it goes up and stop my short position, I will go long, as I am setting my stop loss order on the exact place where my short trading idea stop being logical and a long trend might be in course. To be honest, I would go long only above 147.525 and with half of my size or maybe a third of my size. Full hand only above 149.444 with target @ 154.900 and stop @ 147.500. Always with those principles, strong bar on trend side, size of the bar should be similar to ATR (10) and it should close after support or resistence. It's to show me who is winning the 'tug o' war', bears or bulls.