When we take trades, we take trades off of confirmations, the more confirmations we have on a trade the more confident we are on getting in on the position.
GBPJPY is trending up on the daily time frame, but retracing on the 4hr/1hr time frame, we're looking to continue the uptrend on the daily time frame and looking for entries based off of confirmations, and we have a few of them already as follows:
i) Hitting support level
ii) Hitting 4hr 200MA
iii) Formation of 1hr RSI divergence
These already are enough signals indicating possibilities of reversal into the uptrend continuation, but in my opinion not enough to enter Immediately.
To enter a trade on the pair I want to see the market do the following:
i) Break of resistance trendline
ii) Formation of bullish reversal candle stick pattern
iii) Formation of bullish reversal pattern
iv) Break of previous resistance on the 1hr time-frame
Of all these indicators, the formation of the bullish reversal candlestick is enough for me to enter the trade for a buy, spacing out stop loss and letting the trade run, adding more positions on more confirmations on the way or up or cut loss if market pulls further back down.
ENJOY!
GBPJPY is trending up on the daily time frame, but retracing on the 4hr/1hr time frame, we're looking to continue the uptrend on the daily time frame and looking for entries based off of confirmations, and we have a few of them already as follows:
i) Hitting support level
ii) Hitting 4hr 200MA
iii) Formation of 1hr RSI divergence
These already are enough signals indicating possibilities of reversal into the uptrend continuation, but in my opinion not enough to enter Immediately.
To enter a trade on the pair I want to see the market do the following:
i) Break of resistance trendline
ii) Formation of bullish reversal candle stick pattern
iii) Formation of bullish reversal pattern
iv) Break of previous resistance on the 1hr time-frame
Of all these indicators, the formation of the bullish reversal candlestick is enough for me to enter the trade for a buy, spacing out stop loss and letting the trade run, adding more positions on more confirmations on the way or up or cut loss if market pulls further back down.
ENJOY!