9-19-19 GBPJPY short trade play idea
Here is another Forex Trading Snack!
Yes I know...
But there is significant amount of news risk associated with trading GBP pairs right now, you say.
True! But using calculated risks, there is a great opportunity for an over sized reward for the risk taken in my opinion.
First this pair has completed a double bottom pattern
It has moved up from that bottom some 600-700 pips
It has built on the way up an ascending wedge pattern which has also broken that to the down side.
All of those things point to a higher probability of a reversal in direction lower in price and or a greater opportunity of slower grinding move higher from here. In other words the odds favor prices going lower in my opinion. I just feel without bigger news reports that point to more positive Brexit news—grinding around similarly as it has done week is its best showing to the upside. This week was filled with rate decisions and central bankers and price remains still close to it top but within a range.
When I was a new trader my mentor said all to often to me, “ What doesn’t go up has only one way to go! “
I’m leaning towards another short term pop up in price attempting to retest the highs or even setting another new high but remain under that ascending wedge’s broken lower trend line.
Here is s landscape view of the whole double bottom up to its targeted range and the ascending wedge pattern.
I do have an alternative trade idea should we not get a pop-up in price. I’ll post it in the comments section that is to follow.
If you decide to trade this idea, you also assume all risk of loss.
In trading you either make dust or you eat dust!
All the best In Your trading.
Yes I know...
But there is significant amount of news risk associated with trading GBP pairs right now, you say.
True! But using calculated risks, there is a great opportunity for an over sized reward for the risk taken in my opinion.
First this pair has completed a double bottom pattern
It has moved up from that bottom some 600-700 pips
It has built on the way up an ascending wedge pattern which has also broken that to the down side.
All of those things point to a higher probability of a reversal in direction lower in price and or a greater opportunity of slower grinding move higher from here. In other words the odds favor prices going lower in my opinion. I just feel without bigger news reports that point to more positive Brexit news—grinding around similarly as it has done week is its best showing to the upside. This week was filled with rate decisions and central bankers and price remains still close to it top but within a range.
When I was a new trader my mentor said all to often to me, “ What doesn’t go up has only one way to go! “
I’m leaning towards another short term pop up in price attempting to retest the highs or even setting another new high but remain under that ascending wedge’s broken lower trend line.
I do have an alternative trade idea should we not get a pop-up in price. I’ll post it in the comments section that is to follow.
If you decide to trade this idea, you also assume all risk of loss.
In trading you either make dust or you eat dust!
All the best In Your trading.
Trade active:
Well as I suspected the pair moved right into my targeted short zone. Took a small position. However price action seems to be in a minor ascending channel now. I’ve decided to just manage this position not by taking a small portion off but rather moving stops to BE. I’m managing it this way because he close my orders are to top tick. Just a lucky entry but take what the markets give you. Lol
Trade closed manually:
Took this off the table for +90
It is Friday and it best to take what the markets will give you. There is news risk with any GBP pairs so playing it safe loads the account a bit more for better or new opportunities next week.
Enjoy your weekends. And my your trading week finish in the green. All the best my trading warriors.
It is Friday and it best to take what the markets will give you. There is news risk with any GBP pairs so playing it safe loads the account a bit more for better or new opportunities next week.
Enjoy your weekends. And my your trading week finish in the green. All the best my trading warriors.
All the best to everybody.