Hey guys, I’m new in trading. Working my way around support & resistance and trend lines. From the chart shot what should be my entry and exit points. I want to day trade.
Well, you haven’t given much away but you have said everything. You want to day-trade but you don’t have a trade. Wouldn’t it be better to find a trade (which complies with the rules of your trading strategy) and then decide over what time horizon it would be best to run it?
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Sorry I didn’t have much to go on or give. Trying to learn.
Let me rephrase my question.
What would you look out for from the above chart to enter a trade?
By eyeballing, the average monthly range was about 600 to 800 pip. Monthly candlestick have an estimated overlap of 200pip. May, June, July monthly candlestick closed below monthly mean, illustrating consistent selling pressure. Now is only 17 August, about 2days past mid month. Price already moved more than 600pip. A bounce was observed at 140.000 whole number major psychological level. A bounce looks imminent. I would trade the bounce off 140.000 and GAMBLE that price will breach 142.000. However, remember that selling pressure is still intact. In september, if there were to be an overlap of say 300 to 400 pip between Aug and Sept. It may be wiser to continue shorting GBPJPY. In terms of price action chart pattern, a descending triangle is brewing. A breach below 140.000 major level a second time may propel price to reach 138.000 at least.
If anyone impress with my eyeballing analysis. Click Like
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Thanks. I appreciate your detailed analysis. Learnt from it.
Worth noting there are no bullish daily charts on GBP right now. Several are as bearish as possible without price falling right off the screen. Entering this short now and you’re extremely late joining the downward move, might be better to wait for failure of a recovery and then sell. This pair has lost downward momentum but is not bouncing yet, and it won’t unless the other GBP pairs do also.
If looking to short any GBP pair be aware there could easily be unscheduled news re some sort of Brexit deal progress. That could cause all the GBP pairs to either bounce or at least get into some strong and rapid price movements that could take out all stops.
What is definitive is that there is a long term downward trend in place. Even a 60 EMA would confirm that. IMO, GBP/JPY is the trickiest pair to trade and partly owing to whether UK fundamentals are affecting the economy.
JPY is a safe haven for the Major three USD/EUR/GBP currencies, and UK market sentiment around Covid 19 lockdowns and Brexit, could see sterling flooding to JPY - or alternatively, more BOE QE injections of 150 billion could see sterling flooding back. There will certainly be trends and retractions involved for several months, IMO…
