GBPJPY did indeed retrace twice infact! (Read above post)
Price broke lower through the key resistance and then retraced back higher into the key resistance/old support flip area to where we can see on the 1hr chart it acted as a new resistance area to the pip as we though it may. Price may now move down to the 155.60 where I am still looking for shorts because this is acting as a new flip area (old support/new resistance as the 1hr chart below shows). If this holds and price breaks lower I can see price moving much lower into the 154.00 where I will begin looking to get long on the daily charts.
I was looking at my charts and noticed a 2Bar setup formed on GBP/AUD 4H chart a few hours ago.
I think the level is solid and the setup is formed at a swing low. But what do you think about the trouble area on the way? Is it something that could prevent us from trading this setup?
To tell the truth Iām really reluctant about that.
why donĀ“t you wait for price to come back in your ātrouble areaā and then look for shorts? might be safer then trading against a strong down move?!
my badā¦ i only saw H4 chartā¦ ok i guess when you are not sure, you should not trade
hm what i understood so far is that when you are looking for a trade on the daily you should not care about what happens in the timeframes below. so wait for a reversal on daily and enter thenā¦ maybe you have the feeling to pass the spot and want to get in as soon as possible?
In fact I have drawn my levels based on daily chart a couple of weeks ago and I saw the 2Bar on the 4H. A reversal setup on the daily chart would be worth to be considered.
That is some awesome trade, I saw it coming and placed my stops already.
Keep in mind that a trouble area can only make you trouble if it doesnāt give you enough space to take some profit or go break even. There is a trouble area on every trade,but what makes the difference is the distance. In this case you got enough space to take profit for the money you risked.
From what I see, the recent candles have formed a start of a downtrend. U can see the 1,2,3 formation from the highest high, downwards. Just my opinionā¦
The quiet days of the last couple of weeks have taught me that there is money to be made, but i have benefitted by taking profit at the first logical level reached and moving stops to BE.
I have been tempted to be greedy, but in hindsight, when you get stopped out, you can see the first logical level and where you should have banked some pips. The Rally in USDCAD up to 1.0400 a prime example.
Thanks for the reminder to post the name of the pair or market. Yes, that one was actually 4H gold, lol. I will definitely keep out of that market for the time being. Although I was following a trading plan, I really felt that I got lucky there. Just like you said, I had a hard time determining the correct support for take profit target for that trade. Note to self: stay out of choppy markets with lots of alternating green and red bars
hahaha was so tempted to close it manually then I thought āSTICK TO THE TRADING PLANā
