GBP/JPY- Trend Changing Pattern
My focus this morning is on the GBPJPY, we have seen a strong reaction to the breakdown low that happened on 03 May 2024. The reaction gave us a bullish wave structure on the H1 timeframe, the concluding factor is that wave structure 4 failed to make an HH 5 (200.652). Instead of an HH 5, the price made an LH 5 in an uptrend. The price then proceeded to break structure 4, known as a trend-changing pattern.
Knowing this information determined our directional bias for the GBPJPY.
So far, we have seen a retracement to the LH 5 (200.652), which has now become a structural point because it made a LL.
Yesterday the price formation indicated that the Sellers are slowly coming into the market above the 200.652, we saw sharp rejections twice yesterday and a trade below the 200.65 and 200.50 today will be a sell indication for us.
The invalidation point is a break above the 200.95, above here selling is no longer an option for us.
Think in Probability:
As traders, you must be careful to align your behavior and expectations with the following principles:
- Anything can happen
- An EDGE is only an indication of one thing happening over another
- There is a random distribution between wins and losses
- You don't need to know what will happen in order to make money in trading.
Knowing this information determined our directional bias for the GBPJPY.
So far, we have seen a retracement to the LH 5 (200.652), which has now become a structural point because it made a LL.
Yesterday the price formation indicated that the Sellers are slowly coming into the market above the 200.652, we saw sharp rejections twice yesterday and a trade below the 200.65 and 200.50 today will be a sell indication for us.
The invalidation point is a break above the 200.95, above here selling is no longer an option for us.
Think in Probability:
As traders, you must be careful to align your behavior and expectations with the following principles:
- Anything can happen
- An EDGE is only an indication of one thing happening over another
- There is a random distribution between wins and losses
- You don't need to know what will happen in order to make money in trading.
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