Last night went as planned a nice bounce from 129.60 reaching 130.30 netted 60 pips.
Tonight I feel that bears will once again take control from these levels so my strategy is to sell GBP/JPY around 130.30 - 130.50 with a TP 129.60 - 129.80 and SL 130.80 - 131.00. It looks to me like resistance around the 130.30 region will hold due to bullish momentum easing. I don't anticipate a drop below 129.50 so taking profit ahead of that level and/or keeping a trail of 40 - 50 pips is a good idea.
Tonight's trade is strictly a price action & trend line based strategy. We are currently testing 130.30 resistance and there does not seem to be enough momentum from here to reach the next resistance levels at 131.00. Therefore I will sell.
Thursday, October 14, 2010
Wednesday, October 13, 2010
FOREX DOJO TRADE # 25
Last night turned out to be choppy as anticipated and the trail did it's job. I walked away with about 5 pips, so basically broke even. Tonight it seems that we may see one more wave up in the mini correction. My strategy is to buy GBP/JPY around 129.50-129.70 with a TP close to 130.35 and SL 129.00-129.20.
The daily charts seem a little oversold so I would be cautious about selling at these levels. By looking at the 1 hour and 4 hour charts it seems that there is a slight bullish tone to the price action with highs overtaking the lows in the last 24 hours. The trend line in the 130.30 looks to be holding for now so I think buying at the breached resistance around 129.60 with a TP around 130.30 is a good bet for tonight.
The lower time frames are a bit choppy but are basically looking constructive(possibly building up before collapsing as usual). The 100 EMA is flattening out in the 5 -30 minute time frames which also shows some indecision in the very short term. I personally think that it's to risky to sell from these levels and I'm not sure how high we can go so placing a pending sell order is also a problem. Since I am technically counter trend trading (based on longer timeframes) a trail of 40-50 pips is again recommended
The daily charts seem a little oversold so I would be cautious about selling at these levels. By looking at the 1 hour and 4 hour charts it seems that there is a slight bullish tone to the price action with highs overtaking the lows in the last 24 hours. The trend line in the 130.30 looks to be holding for now so I think buying at the breached resistance around 129.60 with a TP around 130.30 is a good bet for tonight.
The lower time frames are a bit choppy but are basically looking constructive(possibly building up before collapsing as usual). The 100 EMA is flattening out in the 5 -30 minute time frames which also shows some indecision in the very short term. I personally think that it's to risky to sell from these levels and I'm not sure how high we can go so placing a pending sell order is also a problem. Since I am technically counter trend trading (based on longer timeframes) a trail of 40-50 pips is again recommended
Tuesday, October 12, 2010
FOREX DOJO TRADE # 24
Last night was a bit of a surprise as I thought that 130.00 would provide a larger bounce. I guess falling a sleep early sometimes is good for trading as I didn't manage to stay up to buy around 129.95. If anyone did, I hope a 20-25 pip trailing stop was used as advised. If so than no loss/no gains. Sundays trade netted a nice 90 pips so there's no need to be get aggresive.
It still seems that there significant bearish pressure on the pair tonight and a test of 129.00 looks likely. The question is where to place the sell. 129.75-130.25 looks prime. In my opinion 129.80-130.00 is a good are to look in with TP around 129.15 and SL 130.30.
The pair is still below the 100 EMA on the 1 hour - daily charts and is still looking heavy. There is a series of trend lines that should also provide resistance between 129.75-130.30. RSI is also facing up on the 4 hour so the price should go up a bit before it can fall some more.
On the smaller time frames it seems as though there is a mini correction in the works which should see resistance tested in the 129.75 area. Trend lines come in around 129.00, 129.30, 129.70, 130.30. EMA is nearby on the 5 min and 15 min and should provide some volatilty. a break of 130.30 could bring 131.00 into play. it looks like things might get choppy so placing a trail of 40-50 pips is wise.
It still seems that there significant bearish pressure on the pair tonight and a test of 129.00 looks likely. The question is where to place the sell. 129.75-130.25 looks prime. In my opinion 129.80-130.00 is a good are to look in with TP around 129.15 and SL 130.30.
The pair is still below the 100 EMA on the 1 hour - daily charts and is still looking heavy. There is a series of trend lines that should also provide resistance between 129.75-130.30. RSI is also facing up on the 4 hour so the price should go up a bit before it can fall some more.
On the smaller time frames it seems as though there is a mini correction in the works which should see resistance tested in the 129.75 area. Trend lines come in around 129.00, 129.30, 129.70, 130.30. EMA is nearby on the 5 min and 15 min and should provide some volatilty. a break of 130.30 could bring 131.00 into play. it looks like things might get choppy so placing a trail of 40-50 pips is wise.
Monday, October 11, 2010
FOREX DOJO TRADE # 23
My trade from last night is still open and I'm hoping that my TP will be hit shortly. If we do see 130.05 in the next couple of hours than I will place a buy order at 129.95 with TP 130.45 and SL 129.45. I would also add a trail of 20-25 pips to the new order.
Sunday, October 10, 2010
FOREX DOJO TRADE # 22
There certainly seems to be significant bearish momentum on GBP/JPY which absorbing all attempts to keep the price above 130.00. Now that 131.00 has been breached it should serve as resistance on the way up. and Support lies down at 130.00. Since the price has managed to make lower lows and lower highs on the daily and 4 hour charts it seems that a down trend is being established. There is also a the factor of the 100 EMA which is providing resistance on the 30 min - daily charts. In the smaller timeframes the trend line around 131.00 should also provide an obstacle should the price try to rally. I would prefer to to follow the trend by selling GBP/JPY around 130.95 with my TP 130.05 and SL 131.51.
Subscribe to:
Posts (Atom)