On July 15 2020 I posted on social media Stocktwits/Twitter @AidanFX “GBPJPY LONG/BUY at 134.47 Stop Loss at 133.97 Target 1 at 134.97 Target 2 at 134.47 Target 3 at 134.97“
The chart below was also posted on social media StockTwits/Twitter @AidanFX July 15 2020 showing that a bullish market pattern (light blue) formed signalling buyers that the pair would move higher. Bullish divergence patterns (pink) also formed which was another signal to buyers that GBPJPY would move higher. The bullish light blue and pink divergence market patterns terminating near the Dynamic Support moving average and the Static Support level was a good area where the pair can bounce higher from. I called for traders to BUY GBPJPY and only a move below the point B of the light blue bearish pattern would invalidate the BUY trade setup. Stop loss was set below the light blue point B low targeting the green target levels above.
GBPJPY 1 Hour Chart July 15 2020
GBPJPY 1 Hour Chart July 20 2020 : The chart below shows that the original bullish light blue pattern morphed to another bullish pattern when price pushed lower from the BUY entry and triggered more buyers at the XA 0.886% Fib. retracement level. The pair formed back to back similar bullish patterns (light blue) and finally managed to rally higher.
GBPJPY 1 Hour Chart July 22 2020 : The pair pushed higher, respected the next support/resistance level and the dynamic support moving average (turquoise) to finally hit the 1:4 RR target at 136.47 from the 134.47 buy entry for a +200 pip move higher. If you followed me on Twitter/Stocktwits @AidanFX you too could have caught the GBPJPY move higher.
Of course, like any strategy/technique, there will be times when the strategy/technique fails so proper money/risk management should always be used on every trade. Hope you enjoyed this article and follow me on Twitter for updates and questions> @AidanFX or chat me on Skype > EWF Aidan Chan
Always use proper risk/money management according to your account size
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