PriceActionTrading
Short

GBPJPY COMPLETION OF PATTERN AT 161.8

FX:GBPJPY   British Pound/Japanese Yen
277 35 13
SEE CHART. PRETTY MUCH SELF EXPLANATORY IF YOU UNDERSTAND THE PATTERN.
@ 161.8% IS A GOOD SELL AREA. D1 RSI DIVERGENCE.
I HAVE ENTERED A SMALL POSITION SELL AND ENTERING ANOTHER AGAIN AT BREAK OF SUPPORT TRENDLINE.
STOP MUST BE ABOVE THE 161.8%.
moneymaking
2 years ago
Hey price action, market have closed above the previous high but the bearish divergence is compelling, with small risk and potential of large reward. Sounds good to me :)
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PriceActionTrading moneymaking
2 years ago
Nice observation. Structurally speaking, the 161.8 is still holding. Till it is broken with a close above, this setup is valid.
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IvanLabrie TOP PriceActionTrading
2 years ago
I'm not much of a harmonic pattern guy, but it might retrace from here.
Didn't know you traded these.
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PriceActionTrading IvanLabrie
2 years ago
I do trade obvious harmonic pattern, just that i do not draw the patterns out using triangles. i use fibs to identify these harmonics but it will look more complicated and messy. triangles look clearer and easier for publishing.
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IvanLabrie TOP PriceActionTrading
2 years ago
I see, there are a few good traders using them, but they are scarce...I think it has to do with how you can make any pattern fit and set of candles if you dig through timeframes, and people just force fit them at will.
snapshot

I see minimal downside potential if above 187.94.
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moneymaking
2 years ago
Hey price action, could you clarify what type of harmonic pattern is this? Thank you :)
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PriceActionTrading moneymaking
2 years ago
Hi moneymaking, the name im not that sure and in fact i couldnt care much about it. Haha.
It could be bat or butterfly or gartley, either way the important thing is that the pattern ends at 161.8 and it is a very good sell signal.
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moneymaking PriceActionTrading
2 years ago
Hey price action, what would you be waiting for before pulling the trigger? Will you be looking on lower time frames to get better entry with price action confirming?
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PriceActionTrading moneymaking
2 years ago
@ 161.8 i have entered a small sell without any confirmation through a sell order i have placed a while ago. Adding another position once price closed below the support line. Look at how nicely the price has already bounced from the 161.8, already in 100 pips.
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moneymaking PriceActionTrading
2 years ago
Nice work mate. I'll be looking to join you soon only if the market gives good conformation on lower time frame :)
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PriceActionTrading moneymaking
2 years ago
There is one confirmation now on the H4. 61.8% rejection. Although if you enter you would require a 100 pips SL. RR not as desirable but this will probably be the best price you can get in at. I am not expecting price to move higher from now on. If it does my position may be in jeopardy.
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moneymaking PriceActionTrading
2 years ago
Actually I am waiting for this rising wedge to be broken to the downside. Then looking to short on retest, if we get any. You can almost feel how conservative I am being on this particular trade. Is this good or bad, don't know, LOL :)

The rising wedge idea is from anilmangal, currently the 3rd top author of the day.

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PriceActionTrading moneymaking
2 years ago
Thats a very nice setup. Its conservative alright. Haha. Your SL have to be huge to trade that i think.
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moneymaking PriceActionTrading
2 years ago
I think a minimum of 40 to 50 pip stop loss would be sufficient, at least it will be above 61.8% rejection candle that you pointed out earlier . Let's wait and see :)
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PriceActionTrading moneymaking
2 years ago
Yes. Good luck mate. All the best.
Reply
PriceActionTrading PriceActionTrading
2 years ago
Hey moneymaking, this would be the optimal entry if you are still trading the wedge. As it broke out below the wedge yesterday.
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moneymaking PriceActionTrading
2 years ago