As you know my strategy with price action says when the GBP/JPY completes a pattern sequence of at least seven consecutive higher opens or lower opens over seven consecutive 30-minute time frames, there is a high probability the market has exhausted and over-extended itself and I will then play the market against itself, against all those traders who do not understand these concepts and will pile into the last 5% of the market's move which puts them on the wrong side of the market, ultimately either stopping them out or causing them to take a loss. Here's the pattern sequence:
0300 EST - 4718 pip differential of +37
0330 EST - 4773 pip differential of +55
0400 EST - 4840 pip differential of +67
0430 EST - 4862 pip differential of +22
0500 EST - 4887 pip differential of +25
0530 EST - 4905 pip differential of +18
0600 EST - 4920 pip differential of +15
So here we have seven consecutive higher opens and based on this pattern sequence, my trading strategy called for me to take a GBP/JPY short position at the price of the seventh higher open which was 149.20 targeting no less than 80-pips profit. The GJ's high of the day was around 149.48 if I recall, so what my strategy was showing me the market has exhausted and over-extended by the 0600 EST time frame and any move in price beyond the 149.20 level would only up the probability of a reversal, not a continuation because price would only further exhaust itself. By 0736 EST the price pattern paid the 80-pips profit and should the trade have been held longer it would have been paid in excess of 250-pips from entry to the low price of the trade day. That pattern sequence above has formed in the past and it will form again in the future because the market will complete the circle of price replication again in the future and when it does, I will get the same exact results unless an unforeseen geo-political event occurs to alter the emotions of humans and their decision making. But even if I did not know this was a replicated price pattern, just based on the sequence and the pip differentials alone I would know it's time to short, not to buy... but the geo-political factor is a whole other aspect of price action we'll need to save for another time. That's all the time and space I have for now. Don't forget tomorrow is a huge fundamental day and I expect more volatility and price swings in the market. Key levels will be posted in the morning before Wall St. opens. If you have any questions based on this commentary feel free to ask, whether in the chat or via email, I'm glad to help if I can.
0300 EST - 4718 pip differential of +37
0330 EST - 4773 pip differential of +55
0400 EST - 4840 pip differential of +67
0430 EST - 4862 pip differential of +22
0500 EST - 4887 pip differential of +25
0530 EST - 4905 pip differential of +18
0600 EST - 4920 pip differential of +15
So here we have seven consecutive higher opens and based on this pattern sequence, my trading strategy called for me to take a GBP/JPY short position at the price of the seventh higher open which was 149.20 targeting no less than 80-pips profit. The GJ's high of the day was around 149.48 if I recall, so what my strategy was showing me the market has exhausted and over-extended by the 0600 EST time frame and any move in price beyond the 149.20 level would only up the probability of a reversal, not a continuation because price would only further exhaust itself. By 0736 EST the price pattern paid the 80-pips profit and should the trade have been held longer it would have been paid in excess of 250-pips from entry to the low price of the trade day. That pattern sequence above has formed in the past and it will form again in the future because the market will complete the circle of price replication again in the future and when it does, I will get the same exact results unless an unforeseen geo-political event occurs to alter the emotions of humans and their decision making. But even if I did not know this was a replicated price pattern, just based on the sequence and the pip differentials alone I would know it's time to short, not to buy... but the geo-political factor is a whole other aspect of price action we'll need to save for another time. That's all the time and space I have for now. Don't forget tomorrow is a huge fundamental day and I expect more volatility and price swings in the market. Key levels will be posted in the morning before Wall St. opens. If you have any questions based on this commentary feel free to ask, whether in the chat or via email, I'm glad to help if I can.
No comments:
Post a Comment