This is a simple price action based long trade setup in FX:GBPJPY on daily time frame. As we can see the 184.230 level has been tested and respected by the market on several occasions (marked by blue boxes). The amount of re-tests this level has gone through signifies the importance of this level. Thus after getting today’s daily candle close back above this critical level, signals the presence of buyers at this level. Buying at this level allows us to keep our risk at minimum, while targeting for larger profits; which is twice as much for the first target.
Below you see the whole summary of the trade setup, which is also illustrated on the chart above.
Long Trade Setup Summary:
Entry: Buy Limit @ 184.230
Stop loss: 183.40 (36 pips below today’s daily candle lows)
Target #1: 185.911 (closing price of recent high candle)
Target #2: 186.991 (127.2% Fib extension level from recent lows to recent highs)
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