price action

Closing GBP/JPY 213.30 trade

Posted by Nick 0

There are several reasons why I am closing this trade out early, I will list them all below:

1. MPC Treasury Committee Hearings will commence. This is the main reason!

2. Any trade in which you are using two lines for a single trade is riskier than just a single line trade. You are relying on two lines to work as opposed to the normal single line. While the scalp line break delivered the S+R line break just hasn’t managed to push up a decent amount of pips.

3. It has been a very slow week for GBP/JPY and in a market with such low momentum it is never smart to aim for large targets.

4. Price action: The price action is showing me indecision and indecision is not a really great thing especially when your looking for a continuation of a move. Indecision showing up at the top of a trend often means a reversal is coming. It is no surprise that we are seeing indecision with the MPC Treasury Committee Hearings beginning

That is about it, I am closing this trade out now at 213.46, GBP/JPY has been pretty boring over the past few weeks. This happens a few times per year and it doesn’t really worry me. All I have to do is wait it out and eventually it will get back on track. Every year you’re going to have some great months and some slow months. I had a great run from Jan to mid May (4.5 months) now it has decided to slow down for a little while and I will just let it do it’s thing.

Reason I closed GBP/JPY

Posted by Nick 4

Hey guys,

I just got an email asking why I closed GBP/JPY so I thought I’d blog the answer.

I closed the 212.00 break at 212.20 because it did not have any bullish momentum. The price kept getting stuck and retracing so based on price action I closed out early. This time I made the wrong decision but as far as I am concerned any trade that makes pips is a good trade and I do not dwell on my mistakes. I played this trade badly but there will be plenty more trades in future. Also I am a cautious trader and I do not take many risks, if you are less cautious you could simply stay in. That is why I said ‘you should consider’ and not ‘GET OUT NOW’. With these trade update posts I am just letting you guys know how I am handling the trade, you should always decide for yourself whether to stay in or close out.

On another note it is good to know the 212.00 line is working well and I will be looking at the 213.50 next.

GBP/JPY 212.00 break update

Posted by Nick 4

Hey guys,

This 212.00 break was just close at around the 212.20 level. Looking at the price action it just doesn’t look like we have any strong momentum behind this one. So I am out early. So if your following my analysis, you should consider exiting too.

GBP/JPY 200.00 signal

Posted by Nick 11

Hey guys,

How did everybody do with this trade?

From the email and Skype ‘thank you’ messages I have been getting it seems like we got a huge range of profits (as usual). The lowest profit was about 30 pips the highest about 170 pips. On a trade like this it all depends on the subtle differences in the way you traded it. I traded this one a little differently and grabbed 109 pips!

I was watching this trade like a hawk because I had nothing better to do toady. Watching the price action I got a feeling that this trade would not actually reverse. So when it eventually hit 70 pips profit I closed the first half but left my stop where it was. From this point if it totally reversed I would have lost around 5 pips (big deal). Having already made profit this week I wasn’t too concerned with a 5 pip loss. So I left my stop at -80 pips instead of moving it to break even. Yeah, I know I always say target 70 on the first half and then stop loss to break even. If you remember last week though I also say that my trading does not have rules only guidelines. 70 on the first half and stop loss to break even is just a guideline and on this trade I decided not to follow.

Anyway I will delve into more detail in the weekly wrap-up video.

Either way this trade was profitable, be it 30 pips or 130 pips profit is always a good thing.

P.S. How did you guys do on the other two trades of the week?

GBP/JPY trade from the weekly analysis EXIT

Posted by Nick 8

Based on price action i would say now is a goo time to exit. Current level is about 198.15 and the trade was worth 80-100 pips. I will release a trade update vid for this trade tomorrow.

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