Choosing a choose entry - Pivot Level Bounce

Beginner Questions
1

Hey Everyone,
I’ve been examining the USDJPY and the GBPUSD price action and what it does at daily/weekly/month pivot levels, in conjunction with FIBS. I would trade either the breaks of or the bounces at the pivot and S&R levels, setting my TPs for the next significant level, and my stop just below the previous level (i.e. for the case of a buy).

I’ve attached the 1H chart of the USDJPY. I see the following:

  1. Stochastics are in the over bought area. It is also overbought in the 4hr and 1D charts
  2. Price is approaching the Weekly R1 level.
  3. The Daily R1 level is on the 95.00 price, psychologically significant level.
  4. Month R1 is just above it.

My question is, if I was going for the bounce (i.e. Sell Limit), where would the best place be for entry? I could sell at the R1 level, but if price hits the Weekly R1 and heads down, then I miss out on the trade. Then again, if I sell at the Weekly R1, and the prices bounces of the Daily R1, I lost out on a 15 pip-better entry.

I would enter at the Daily R1, 95.00. But I would appreciate others thinking on comparing the two entries.

I know this is a purely technical setup, as I’m looking at it right now.

Cheers,

Synergy

usdjpy.jpg700×367 45.1 KB

2

put an entry on both positions that way you won’t miss out ifyou can’t be there to monitor it. just makes sure your covered if it goes completly the wrong way!
tony

3

Here is what I see. S1 has proven itself to NOT be S/R. Instead, it has shown that price has reached a relative equilibrium (i.e. a pivot point) at that location (the clue comes from the first few sessions where price touched that level). I would not trade any bounce or continuation that occurred from that level. The only time I would even consider trading a bounce is approximately around the 9H mark of Apr 30. Why? I can visibly see that price is overbought in relation to the equilibrium I mentioned earlier. Indicators only confirm what I already know.