Ok guys. Sorry about putting the analysis up late this week. You may have noticed mid way through last week the whole site started encountering errors and running slowly. This was due to some updates to the server. It was very tiring work but I had to rebuild most of the website!
Anyway that left me with no time to do the analysis. However, it’s better late than never!
Ok so I am using S+R lines again, in the chart pic below you can see all my S+R lines for the GBP/JPY on the 4hr chart. Blue lines are S+R lines, orange lines are scalps.
1. Long @ 158.50 – average line (already triggered) +50 pips
This line formed last week it wasn’t a very strong line but it was a line and the trade worked.
2. Long @ 159.60 – strong line (already triggered) -15 pips and +70 on reversal
This line formed last week. This trade has already been triggered but the loss on it was minimal. The break candle closed as a reversal candle on the break line so that was a no excuses IMMEDIATE exit sign. It was also a sign to enter a reversal trade which ended up being worth +70 pips!
3. Long @ 160.50 – strong line (70 pip target)
This line formed a while ago and it is in fact a S+R lines with a two week old scalp line just below it. You can trade the scalp which stand at 160.40 but I thinks it’s much safer waiting for the S+R/psychological 160.50 line to break.
This looks like a good line!
4. Short @ 155.90 – strong line (50 pip target)
This is a scalp line with a S+R line above it at the 156.05 level. I like this scalp because it is a psych level, an S+R line and a scalp all in one. However, since I am mainly looking for a scalp break the target is 50 pips.
5. Short @ 154.00 – strong line (50 pip target)
Again, we have a scalp line, S+R line and a psych level in the same area. The scalp and psych level are the lowest sitting at 154.00. The S+R line is actually 30 pips higher at 154.30. Since the scalp is the lowest I will trade the scalp so the target is 50 pips.
I wll resume the GBP/USD analysis next week but we had a great trade on GBP/USD too!!!
{ 4 comments… read them below or add one }
Thanks Nick; much appreciated. I took the winning trade on GBP/USD too. One question though; I got hit on the false break of 159.60, but also lost on the reversal. The only thing that could have been different between you and I there was my entry (or SL / TP differences). What was your entry point for the reversal trade?
Cody
Hi Nick,
2 questions: GBP/JPY when you mentioned that there was a reversal candle after the failed break out of 159.60 level, did you meann that the same BO candle is also the reversal candle < 159.27? if yes then it was a loos
GBP/USD was not a valid trade since it broke on news exactly and we don’t trade news break out.
Hey Nick, Thanks for your willingness and hard work in teaching us how to become better traders. I just happened to be sitting here re-reading your ebook on S+R lines and scalp lines when your weekly analysis came up. Coincidental? Anyway, thanks again
Thanks for the analysis, but don’t understand much as I am new to the stock market and trading. I paid for a robot trader (Expert Advisor) that I am following everyday but don’t understand yet. I am trading on a Demo account. I need to find a place where I can learn what you explained in your weekly market analysis. Do you have something on your web page that you can direct me to? Much thanks!