I’m not in the trade yet. Stochs still in OB level (and pointing up). But if a short does confirm then targets would be at 1.272% or 1.8809 and i’ll let the remainder run at BE (a bit of a deviation from Philip’s trade management rules).
Gbpjpy is looking good once this candle closes?
I was in it since last week, 200 pips so far. By the way some of babypips members suggested that 14,3,3 gives close results to 14,3,1. So may be you can switch to that?
yes, i will try with 14,3,3…i think in the worst case i miss a few signals…but still better than getting in too many that don’t work out 
sometimes i still have doubts about the fib extension…like in this trade…my 1.000 level for putting SL to BE would be 300 pips away…can this be right?
i draw the fibs as mentioned before in the thread, from the highest high before the cross to lowest low after the cross…
I thought enter the trade once the stochastic crossover? So need to cross the level 80 only we enter the trade?
The stochastic in the picture has two lines, a purple line and a black line. We wait for the purple line to go above 80 then cross below the black line. We enter then.
I can’t see the picture clearly but your stop loss has to be 10 pips above the high you have in the picture. I had stop losses that are a 1000 pips away.
[B]Strategy Nugget:[/B] Notice that in most cases, 1.272 extension is always hit. The rest of the Fib extensions beyond that ‘[I]May or May not[/I]’ get be reached. It would be best to set the first target to 1.272 and then let the remainder of the positions run their course either at BE or at an improved stop loss.
Your thoughts Philip??
GBPJPY is very interesting right now. Or perhaps confusing at best.
Stochs: Crossed over (but still above 80). Should get confirmation in the next 1hr 15 mins.
EMA is a Sell, and current price action moved above 20,50 EMA’s but there is no bullish crossover yet.
Candlesticks make a classic reversal with high->Higher high->lower high
So I think in the next 1 hr 15 minutes, we’ll know whether to go short on GBPJPY or to stay aside for a possible long.
P.S: I personally think this will turn out to be a ‘long side/buy’ trade
Isn’t it the both lines cross ady above 80??
No - it’s just the Stochastics Main line that needs to enter the Overbought or Oversold areas - the Signal line doesn’t need to.
That is good to know
Yeah I gave out the pattern so people can trade it in the way you like, including an idea such as yours. I like basket trading. I’m now starting to open 3 positions of the same trade; one with a 127.2 target, another with 161.8 and the third is a regular trade style. I like your idea alot and its up to traders to incorporate their preferred trade management style.
@jw1981 we have the exact same list.
I’m also cautious with GBPAUD and GBPJPY. And I agree with you on GBPCAD might give a sell signal pretty soon. Just looking at PA for now. And I also don’t think it would be wise to go short on pound against all 3 and end up tripling the loss, as its a countertrend setup.
Sorry about my noobness, but, what does that means? You got example or picture can show me? I’m now kinda confuse about the stock line right now.
You don’t need both lines on the Sochastics to cross into the Overbought / Oversold areas. The only one you need is the Main line to cross into Overbought / Oversold. Consider the Main line the faster of the 2. The other Stochastic line - the Signal line doesn’t have to cross into the Overbought / Oversold area to validate an entry (typically it does though following the Main line).
The criteria for Stochastics confirmation are:
- Main line entering into Overbought / Oversold.
- Main line crossing back over Signal line (can be within or outside of Overbought / Oversold area).
I picked a random chart to highlight the Stochastics lines - showing a cross outside of the Overbought / Oversold area. Would have been a theoretical valid entry had there been an EMA cross just beforehand.
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maybe i didn’t express myself correctly, sorry…i would like to know if i draw the fib extension correctly, as it would take nearly 300 pips from my entry to reach the 1.000 level (where we put the SL to BE)…
i attach a new screenshot, maybe you can see it better on this one…
Did you end up taking the short on GBP/JPY ?