GBP/JPY trade

Posted by Nick 5 Comments

Hey,

This is just a brief explanation of what happened with the GBP/JPY trade this week. Some people got stopped out because they took it as a scalp instead of an S+R trade. Watch the video below:

Tags: forex, forex analysis, forex profit, forex trading, forex trading education, free forex education, free forex signals, gbp/jpy, plan, trade update, weekly analysis

adam

Nick, i am just wondering when u took this video? This is because the candlesticks came right down after the trading have closed to 204.54 level. By the way, which broker do you use? Also, what platform do you use? I want to know because my platform do not allow me to adjust the lines to the colour i want and also the thickness of the lines. Thank you!
fabnet74

Hi Nick, what you are now explaining does definetly make sense. I personally got stop out at 204.48 but after reading the forum post I re enterd the trade at the second breakout considering it as a S/R line and I finally made 95 pips from closing 1st half at 35 pips and 2nd half at 60 pips. Totally I made +45 pips. Was a very important lesson this week. Thanks again!!!
skipw

Nick,
I have a question about s/r lines re-validating after a trade. Does price have to bounce only once off a s/r line to re-validate even if you have price fluctuating over the line for a few days. One example would be 203.46 line on the GBP/JPY chart. It seems that line is not a s/r line because you don’t have it as thick as your s/r lines. Price has crossed it several times. But let’s say you get the same type fluctuation at the 204.82 where price keeps crossing over the 204.82 several times over a few days. Then price drops to 202.40 stays there for a day or so, then comes back up and bounces off 204.82. Would that re-validate the line as a s/r line? I’m trying to apply your method to another currency pair also. Thank you for your website and your help for noobs like me.
Bap

Nice Anal. Nick.
Just to expand on what you said about stop hunting. One of my brokers
IBFX had a low of 204.47 and the other MBT was low at 204.51 for the same candle. I think everybody should watch the movie ” Million Dollar Baby” and take the message to heart.
Thanks for all your work. It is helping.
robertmc

About stop losses being on ’round’ numbers. I use stop losses that end in either 3 or 7. This prevents a lot of hunting. Yes, you are adding 7 pips to your loss when it turns out to be a true reversal but the gains make up for it.