GBP/JPY Swing Trade Analysis - 08/01/2023
I have been looking at this trade for a number of weeks now and I previously
had been looking for a short entry off a massive liquidation FVG which was
made on the 20th of December. I expected price to retrace to the mitigation
point of this Fair Value Gap. I had multiple confirmations for this entry
however the trade didn't fit my criteria so I didn't enter. Price had came
back to the bottom of the FVG and dropped creating new lower lows and indicating
price to carry on in its downtrend.
We are now on the 8th of January and price is sitting at 159.731, currently
mitigating the most recent FVG. We have seen an equal high be made, which
is the first thing i noticed about this possible short position.
What I believe price is about to do or mildly follow this sort of guide line
is price to shoot up around the open of the trading day Monday taking out
traders who are in a sell position already to gain liquidity for the next
downward rally. Adding confluence to this theory is what solidifies it for me.
We have the most recent D1 Order Block lining up with the mitigation point of a
H4 Order Block and 160.500.
For the entry I will be looking on the H1 chart for price action and TDI
confluence. I will be looking at three possible target profit areas:
TP1 = 158.525 ( 1/3 position closed)
TP2 = 157.795 ( 2/3 position closed)
TP£ = 157.300 ( Full position closed)
I have been looking at this trade for a number of weeks now and I previously
had been looking for a short entry off a massive liquidation FVG which was
made on the 20th of December. I expected price to retrace to the mitigation
point of this Fair Value Gap. I had multiple confirmations for this entry
however the trade didn't fit my criteria so I didn't enter. Price had came
back to the bottom of the FVG and dropped creating new lower lows and indicating
price to carry on in its downtrend.
We are now on the 8th of January and price is sitting at 159.731, currently
mitigating the most recent FVG. We have seen an equal high be made, which
is the first thing i noticed about this possible short position.
What I believe price is about to do or mildly follow this sort of guide line
is price to shoot up around the open of the trading day Monday taking out
traders who are in a sell position already to gain liquidity for the next
downward rally. Adding confluence to this theory is what solidifies it for me.
We have the most recent D1 Order Block lining up with the mitigation point of a
H4 Order Block and 160.500.
For the entry I will be looking on the H1 chart for price action and TDI
confluence. I will be looking at three possible target profit areas:
TP1 = 158.525 ( 1/3 position closed)
TP2 = 157.795 ( 2/3 position closed)
TP£ = 157.300 ( Full position closed)