Possible GBP/JPY trade - Extreme Caution

Possible GBP/JPY trade – Extreme Caution

Posted by Nick 2 Comments

Hey Guys,

Yes I am using trend lines. I know it’s not part of my method but I have been experimenting with them and they work very well with my support + resistance lines. Right here we can see a descending wedge on GBP/JPY. The top line of the wedge intersects with the 136.30 scalp line which has had three strong bounces. It looks like a decent set-up.

Basically I see it backing itself into a corner and I would love to see a break of the 136.30

This is a VERY DANGEROUS trade as there is a lot of news coming out today. I will take it but I will exercise EXTREME CAUTION.

So the trade is:

Entry: Short on the break of the 136.30 scalp line
Stop: – 70 pips
Target: + 70 pips

I will be watching this one like a hawk. The first sign that its going bad I will probably close. I suggest if you are a newbie and do not have a few trades under your belt you only demo trade this one. It is a dangerous trade.

Tags: 70 pips, demo, forex, forex analysis, forex profit, forex trading, forex trading education, free forex education, free forex signals, gbp/jpy, scalp line, trade update, weekly analysis

invester100

hi ,nick hmm it’s new when you begin using wedge ?
the chart is not a 4 hour chart , why you are using it ?
Dane

I’ve been mucking around with some trendlines and triangles as well. I have found as they are not as precise, I like trading their breakouts or bounces in conjunction with SR lines or psyc levels for entries. I still don’t take many trades like this but it’s just something different to keep an eye out for. Nothing beats the momentum and precision of an SR line break!