GBP/JPY 17 dec direction

Hi there!

I am new here and would like to seek your advise on GBP/JPY direction for today.

I’m using ichimoku, DMI, ADR and MACD as my guide.

And most of the indicators pointed to a down direction for GBP/JPY. WHats your take on this? Coz the price seems to be edging upwards more than downwards.

THanks!

Indicators are lagging. It shows history record and not current price movement. It was retraced higher yesterday and it looks like price will move higher to retest at level of 184.860. Wait for price structure at this level. Safe trading.:5:

Hi YkTan,

smartfx921 made a good, technical, and insightful point about price for this pair; I do not have the chart in front of me

but the Yen crosses have been hinting at a move lower, although whether this is a true risk-aversion reversal of the

dominant ‘carry’ up-trend or just a temporary correction is too early to say, so perhaps, if you can wait, stay out of it

for this and the next week, and wait until the first couple of weeks in January to test the waters, as the market liquidity

returns to more normal levels…There may be a number of false moves in the next few days, leading up to Christmas

and New Year, so you may get trapped into the wrong trade, short-term.

Take care and Happy Trading.

Indicators are lagging.
Price on a chart is lagging.

Whats the point?

Everything we as retail traders have access to, to trade, is going to be a derivative of some other piece of data (indicator - movement in price, movement in price - orders filled).

Yes, indicators are lagging in pure definition.
But, not all indicators are lagging in application.

For example- lane divergence w/ Stochastics. This is not a lagging indication of price- it is forward looking.

Jake

While most indicators may be lagging it does not mean that they can’t be used. Those who figure out how to use them properly can find them beneficial. You would be surprised what some people come up with, but as long as it works who cares?

I totally agree with the points everyone has mentioned. Lucky i did not enter. Phew… hahaha

Jake, care to elaborate more on lane divergence w/stochastics? Have not tried that but then again I think im kinda new to forex. hahaha

THanks everyone for the prompt advice!

You’ll be better off if you research the topic on your own.
Tons of free videos on youtube explaining the strategy in depth.

Basically, you’re looking for price to be doing one thing, and, the indicator to be doing the opposite.
For example- in a downtrend, you see price make a low and a new lower low.
But, the stochastics indicator is making a low, followed by a higher low.

Before you study up on any strategy, do yourself a favor and learn EXACTLY how the indicator works. Learn how the data is calculated. Eventually, you’ll come to learn that the indicator is just a “quick” way for newer traders (and those w/ less time) to spot setups.

STOCH just plots a line and an average of that line in conjunction with candle closes over the previous x periods. So, if you’re “looking back” 15 periods (your range), and all the closes are consecutively higher, and near the top of the 15 period range, stoch will be traveling from oversold to overbought levels.

When a market is trading sideways, your stoch indicator will be all over the place.

Look up John Kurisko- he has the best (from what I’ve seen) strategies for STOCH.
Pretty basic stuff- in an uptrend, you’re looking for a bull flag within an ascending channel, and an oversold stoch to get long.

Jake