Nice end to the week and month for my trading, GBPJPY rules
Today was spectacular trading for me, little sleep, but it was worth it! The clue to big profit: the inside daily candle on the GBPJPY at Thursday’s close, plus that beautiful double top at 141.70 that formed late on Thursday. Nice! I usually check the daily charts around 6pm NYT to look for inside daily candles or other chart patterns for the following trading day. I entered the short GBPJPY position at 140.71, and decided to target 100 pips. Price pretty quickly went to my target with little hesitations. I decided to wake up around 2am to check for further short opportunities, I very rarely trade the London open session, but I was a bit behind on my weekly pip count, so I sucked it up. 2:30am I entered a short on GBPJPY at 139.42. Now, I did use a fibonacci retracement on the down move that started during the asia session and so was looking for the 50% retracement at 139.96 or so to enter the short. But then I noticed that 139.87 was a resistance level earlier on Thursday and that level again was important. I again targeted 100 pips. And again, in about 1 hour my target was hit, which was good because I was tired! After a few hours of sleep I managed to get myself up at my normal 6:45am to check the 7am trade. COFFEE.. Again I fibbed that recent run down and the 50% retracement came to 138.82. As soon as I got my charts up and running GBPJPY touched the 138.82 level to the pip and began decending again, so again I entered a short, at 139.50. Down she fell and I took another 100 pips. I was figuring that the 4hour 50ema would hold shorts, and since the lower bolinger band on the 4hour chart was also around this level I was happy to take profit even though price did run down an extra 70 pips or so. But immediately I thought: the 4hour 50ema, would be a GOOD BUY. Since this pair was running up and up all week and the 4hour 50ema was slanted up pretty strongly, I decided that if price did touch it I would try to buy there. Sure enough soon after the 8:30am news, price touched the 50ema and my entry was filled at 137.00. I decided to target the 4hour 21ema which is pretty much half way between the lower and upper bolinger bands, near 139.50. I placed a stop loss 50 pips below my entry. Within 2 hours my target at 139.50 was hit, another 250 pips. Incredible day!! +550 pips today to add to my meager +210 pips for the week. Nine trades this week total with only 1 loss, trading the GBPUSD and GBPJPY. Now, off to nap..

Jennifer Shotts

Casey Stubbs has been trading for 14 years. He started trading in the stock market and moved to Forex.
Richard draws from his extensive experience trading to write insightful trading articles for both fundamental and technical analysis.
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