GBPJPY Double bottom buy zone 1000 pip move up
Lovely little set up here. GBPJPY approaching a double bottom set up and a key buy zone historically.
Confluences for this trade
1. Need to see price reach same area as previous bottom. If not i will not take the trade. Once reached look for continues rejection probably on lower time frames (15 min and 30 min).
2. This pair has dropped a lot recently so normally we see a pull back and i have plotted the Fibonacci retrace which my tp level is near the golden zone of 61.8.
3. Double bottom pattern is a historically accurate pattern to trade.
4. Price region which pair is approaching is also a key level for buy zone.
Points to consider
Wide Stop loss however risk reward is great at 1:4. (£100 risk for £400 gain) (1% risk for 4% gain)
Also corona virus has been making the markets very choppy therefore a wider stop just in case of any drastic movement.
Price is currently in a descending channel so overall bearish so it could easily continue going down however like i said earlier i am expecting a pull back soon this is why Risk management is important here. Protect your money people.
Lets make some percentage gains!
Confluences for this trade
1. Need to see price reach same area as previous bottom. If not i will not take the trade. Once reached look for continues rejection probably on lower time frames (15 min and 30 min).
2. This pair has dropped a lot recently so normally we see a pull back and i have plotted the Fibonacci retrace which my tp level is near the golden zone of 61.8.
3. Double bottom pattern is a historically accurate pattern to trade.
4. Price region which pair is approaching is also a key level for buy zone.
Points to consider
Wide Stop loss however risk reward is great at 1:4. (£100 risk for £400 gain) (1% risk for 4% gain)
Also corona virus has been making the markets very choppy therefore a wider stop just in case of any drastic movement.
Price is currently in a descending channel so overall bearish so it could easily continue going down however like i said earlier i am expecting a pull back soon this is why Risk management is important here. Protect your money people.
Lets make some percentage gains!