Feels like its been forever since I posted, markets have been providing me with little opportunity so there hasn't been much to post, and If I posted ever idea that I had, then this would be a signal service instead educational content.
Today I want to give you guys a look at GBPJPY . So I have been following this pair for quite a bit now and its been on a strong move along with EURJPY and USDJPY . The reason I never thought of a short trade was because we were not at a major level of S/R. We were in the middle of no mans land and this is something that I talked about in our latest Forex Insider View Click here to check it out on youtube. So in the video I go over how I use specific formations to give me my reason for entry ONLY when we are pressing up against major S/R and how its important to be able to identify the difference.
The good thing about GBPJPY right now is that we are just starting to press up against a level of support now turned resistance, on top of that we have the 61.8 retracement in confluence with the 1.272 Inverted Extension, So now that we are pressing up, I can start looking for reasons to get in short, now keep in mind this would be a Counter trend Short without extended targets. It would only be a push down lower till we reach support and then continue onto new equity highs. Its possible you might see a on the daily so be careful for that as well, EURJPY just double topped and then made a move higher.
Keep in mind, these are IF/THEN predictions. Meaning, I am not predicting what the market will do, I am preparing myself for whatever the market decides to do. So I will not rationalize a short just because I think it might give us some temporary relief, I will only enter IF the trade hits all the checklists.
Hope this helps , Like always if you have any questions feel free to comment below !