Sharp Reversal USD JPY, would have taken out Stop Loss had I traded it..
It was tempting, but there were some important reasons that led me to avoid this one.
These types of trades can be tempting especially when the 4 H Chart offers 100 Pips. But what I find is that targets of less than 100 Pips or 100 Pips exactly tend to be associated with weak setups and signals. So even though the 4 H had strong Bearish Signals, the Signal on the Daily Chart was weak. This usually leads to volatility and reversals on the lower time frames.
As you can see, the last Bearish Candle was fairly weak compared to those that normally lead to strong moves such as those that led to the strong downtrend on the left hand side of the chart.
Key is to always keep an eye on the Daily Chart despite how strong the signals on the 4 H Chart maybe.
I firmly believe the Currrency Market WANTS US TO BE PROFITABLE. It WANTS US TO BE ABLE TO PREDICT IT and profit from it unlike the false belief given to us that its impossible to be successful. Take the recent trade on the GBP CAD.
This recent trade on the GBP CAD provided 175 Pips in about 3 days, as the pair continued to form a Range Setup on its Daily Chart.
The Signals given that gave the green light that it was good time to enter was the Double Tops and the break of the Uptrend Line on the Daily Chart...
After these were seen, I then used the 4 Hour Chart to enter short...
After a few days, target was hit. This was folllowed by a sharp pullback that took place shortly after my exit, indicating that the target was accurately set and that my Exit Strategy was in sync with those of other traders.
As I continue to trade, what I realize is that the Currency Market almost WANTS US TO PREDICT IT and PROFIT FROM IT. (Unlike some of the brokers out there lol) Why do I say this?
One of the main things about this trade was that it took advantage of being able to predict the formation of the Range and the downtrend that was gonna take place.
As you will hear in the video analysis below, there are certain pattens of candles that the market gives that tells us when these patterns are taking place. Once you can spot them and anticipate when U-Turns will take place, you´ll have the ability to exit trends that are about to end and get ready to trade in the opposite direction - for strong gains.
This is how the market works. It has a certain set of Candlestick Patterns that indicate what will take place. These patterns are repeated on a regular basis and happen across all curencies. Its almost as if the market wants to make sure we can see what it will do by repeating these patterns over and over every week until we finally see it, understand it and are able to make a trading plan to profit from them.
So the market is very difficult even to the experienced traders, but it gets easier when we are able to spot these patterns and profit from them with less fear and anxiety but with more Confidence and Certainty.
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