GBPJPY |Who Wins The Battle, Technical Analysis or Fundamentals?
Hi,
I'll try to do an experiment. Usually, those trades are totally out of my list but currently, the situation almost requires to do it.
Currently, the riskiest pair on the Forex market is GBPJPY and I'll try to catch that huge "falling knife" with a purely technical level :O
Fundamentally, this pair is totally smashed into the mud but do we can gain some profits by buying it. Obviously, it should be short-term trade and obviously, we need to see a bullish candlestick pattern on the marked blue area which consists of historical trendlines and they make a crossing area inside the blue box.
A possible bounce area consists of:
1. The black trendline since 1st March 2018. It has worked three times as a support level and the price approaching it fourth times.
2. The blue trendline since January 2012. To draw a trendline, there has to be also a second point and the second point is October 2016. Now, the price approaching it third times and which is really important - those two trendlines make a crossing area just below the current price. Now the minor technical aspects, they also make this area a bit stronger...
3. Previously worked support level in 2016.
4. The round number 129.000
5. Short term AB=CD
6. 2016 November gap adds a bit strength into the blue area.
7. I usually don't watch it but RSI is totally oversold. I add RSI indicator into my criteria list ONLY then when the price approaching strong levels.
8. ...and you should wait for the prementioned bullish candlestick pattern.
Who wins the battle, fundamentals or technical analysis?
Do your own research and if this matching with mine then you are ready to go!
Please, take a second and support my effort by hitting the "LIKE" button, it is my only fee from You!
Best regards,
Vaido
I'll try to do an experiment. Usually, those trades are totally out of my list but currently, the situation almost requires to do it.
Currently, the riskiest pair on the Forex market is GBPJPY and I'll try to catch that huge "falling knife" with a purely technical level :O
Fundamentally, this pair is totally smashed into the mud but do we can gain some profits by buying it. Obviously, it should be short-term trade and obviously, we need to see a bullish candlestick pattern on the marked blue area which consists of historical trendlines and they make a crossing area inside the blue box.
A possible bounce area consists of:
1. The black trendline since 1st March 2018. It has worked three times as a support level and the price approaching it fourth times.
2. The blue trendline since January 2012. To draw a trendline, there has to be also a second point and the second point is October 2016. Now, the price approaching it third times and which is really important - those two trendlines make a crossing area just below the current price. Now the minor technical aspects, they also make this area a bit stronger...
3. Previously worked support level in 2016.
4. The round number 129.000
5. Short term AB=CD
6. 2016 November gap adds a bit strength into the blue area.
7. I usually don't watch it but RSI is totally oversold. I add RSI indicator into my criteria list ONLY then when the price approaching strong levels.
8. ...and you should wait for the prementioned bullish candlestick pattern.
Who wins the battle, fundamentals or technical analysis?
Do your own research and if this matching with mine then you are ready to go!
Please, take a second and support my effort by hitting the "LIKE" button, it is my only fee from You!
Best regards,
Vaido
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