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FullTimeTrader
Jul 21, 2015 3:53 AM

GBPJPY-convergence divergence setup near 195.000 Short

British Pound/Japanese YenFXCM

Description

Trading this pair is very tricky. I posted a long term setup but this is my alternate plan using one of my favorite setups : convergence divergence combination on D1 and H4 charts:

1) after a clear rally price makes it first convergence on D1 chart.
2) then price makes a correction forming a divergence on H4 Chart (shown below).

We can see also the 0.8860 fib level at that area.

This setup is very reliable and offers a R/R ratio at least 1:2

Best regards

*****************DISCLAMER********************************************************************
This is just and idea, not a recommendation to buy or sell.
Always do your own analysis before opening a trade.
Managing is 60% of a trade, anytime I may decide not to open, close or even stop and reverse a trade depending on price action.
Any respectful and constructive ideas are welcome.
We all are here to learn sharing ideas, have fun and improve our performance.
Comments
FullTimeTrader
h4 chart
ChetanFX
Looks like 176 is the next target. Good job!!
FullTimeTrader
Hello, as i said i took profits too early after the china crisis, a lesson to learn!!! we must alway follow our plan
ChetanFX
yes, completely agree..I took short from 193.5 and added more at 195 for target 186 and now I see it was my mistake to exit too early..
PriceActionTrading
I exited my GJ close to BE due to range movement. Will wait for confirmation of trend after close outside the big D1 "doji".
FullTimeTrader
i think we could be starting a huge correction, so you can join it after your confirmation
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