Hope you caught the 155.70 scalp line trade on GBP/JPY that I blogged about at the start of the week. However, there were two more trades this week that together made a minimum of 100 pips.
Reversal Trade
If you have read the free e-Book then you should know how to trade reversals. I traded this one live, in the chat room. It was a great little trade and it made me 50 pips. Let’s dissect it for all you newbies who haven’t done much NickB reversal trading. I won’t explain the basics as you can find them in the Forex Trading Strategy section:
As you can see, we had a very strong bullish move that broke our scalp line and made us 50 pips. As soon as the rallying bullish candle closed, we had a reversal candle close and bounce off the high of a previous candle. The next candle was a reversal candle too. This looked like a very strong possible reversal for a few reasons:
1. The reversal candle did not make a new high past the previous candle. It is always good when the reversal candles does not move higher than the previous candle (or lower if it’s a bullish reversal).
2. The second reversal candle closed with a bearish body and again did not move higher than the previous candle.
The lower highs suggested to me that the bulls were losing power. The bearish body of the second reversal candle came close to confirming that loss of power.
The next step was to pick a line to trigger the trade. This was easy as I picked the low of the first reversal candle. I always look for a minor (sometimes a very minor) S+R line as a trigger. This just confirms in my mind that it is a real reversal. The fact that the bears manage to break this minor lines tells me that they really have taken control. This trade was quite easy and it was over in 20 min.
Entry was 158.25 and, because it was triggered in the slow moving Asian session, I made my target 50 pips. I always lower my targets in the Asian session. Reversal trades taken in the London session I target up to 100 pips.
Yearly High + Scalp Line
This one was really easy and, even though I did not blog, it you should have got this one. The 159.20 line was a yearly, high scalp line just like the 155.70 line we had earlier in the week. The 159.20 line was stronger though, as it had two bounces. Check it out:
The break of this line created a very nice bullish rally. I missed this trade since I was asleep, but I would have targeted 50 pips on this one. Just a simple line break. I have shown how to trade these in the Forex Trading Strategy section.
This was a very easy trade, yearly high + scalp line + master candle. If you didn’t see this line YOU NEED PRACTICE!
If you caught this trade leave a comment on the blog!