GBPJPY short - Head and Shoulder - Bigger Picture - WHY?

6 thg 5, 2020

Hello Traders!

Like mentioned in the last analysis. This is my analysis of the bigger picture.

Why do we need the bigger picture?
This should be pretty clear. We can not always trade on the lower timeframes just because the charts look good for that specific setup. It is important to trade with the overall direction of the market. Therefore all you trade setup became more accurate.

The bigger picture:
So what do we see here. A nice Head and Shoulder Pattern on the daily timeframe. We are now about to break the neckline. Afterwards we will see a big drop. My target for that is the Demand Zone marked on the charts. For a nice entry check out my h4 GBPJPY analysis. On the lower timeframes we can determine a better entry. But first we need to watch the bigger picture in order to get more confirmation for our trade setup. Like mentioned in the h4 analysis. We may go up to the Supply Zone to grab more liquidity before we will see the drop.


That was my Idea and I hope you liked it. Please leave a LIKE if you like the content. In the comment section you can share your view and ask questions.

Thank you and we will see next time
- Darius.