GBPJPY DST Long – 23 & 27 Mar 17

Account Risk: 0.3%
Long: 138.65
Stop: 138.06 (55 pips)
Target: 140.28, 4H 200MA (163 pips, RR 3.1x)
Mindset: Optimistic (bad sign 🙂 !)

Update – Stopped out – 27 Mar
Update – Re-entered the trade – 27 Mar
Update – Hit the target – 27 Mar

Woah not had a long in a while! Feels like I’ve been shorting everything lately. I’ve had a few set ups forming on the pound but this one has a decent spike down following the terrorism attack in London this week. It also has a good technical pattern and it looks like we’re trying to break-out to the upside.

So I’m in the trade, but I’ve downsized my position. I’ve done this for a few reasons.

  1. I’m in an account drawdown (albeit a small one)
  2. I found on trades where only part of my position was filled that I was much more carefree with the trade
  3. The thing I’m enjoying most right now is taking a position/being in trades, rather the stressing about making money.
  4. Being in a trade, but putting some money on the line, teaches me so much more about price action. Reviewing chart history and patterns is SO different to reading a chart at the right edge.
  5. My stops are generally tighter so I get better RR and can make similar money risking less

Here’s the set up …

4H Chart – set up

GBPJPY 4H Chart – 23 Mar

Two downward sloping trend lines that seem to have been broken to the upside. Price is currently hugging the trendlines. I’m looking for a break away to the 200. Price has been chopping around the others for a while!

Daily Chart

GBPJPY Daily Chart – 23 Mar 17

I can see the 50MA coming into play at some point, it’s not been tested for a while. Also the 50 and 200 are creating a nice price channel.

We’ll see how this plays out.

Update – Stopped out – 27 Mar

I adjusted my stop slightly over the weekend, I didn’t pick the absolute spike low (broke my rules) and picked the next lowest spike down. The currency pair is very spiky and the range meant my risk to reward wasn’t great.

I got stopped out overnight, but the set up is still valid.

Update – Back in the trade – 27 Mar

As the setup is still valid, I’ve got back into the trade this morning.

Account Risk: 0.3%
Long: 138.25
Stop: 137.89 (36 pips)
Target: 139.17, 4H 50MA (92 pips, RR 2.5x)
Mindset: Still optimistic, although price action isn’t great)

Here’s the current situation:

GBPJPY 4H Chart – 27 Mar. Red is the original trade, stopped out. Blue is the new trade.

One last thing on this trade, on the higher timeframes, I like this setup for more upside.


Handrailing the 50MA

GBPJPY W Chart – 27 Mar


Bullish wedge.

GBPJPY Daily Chart – 27 Mar

I want to hold on to this position for a much bigger target than I am currently aiming for but it isn’t disciplined to do so. So I probably won’t, but maybe I should paper trade this?

Update – hit the target – 27 Mar

Price went up to the 50MA target late last night and as I decided to keep my target where it was, closed my position. Here is the chart this morning. Let’s hope another set up comes along to get me in a breakout of this trade!

GBPJPY 4H Chart – 28 Mar. Nice touch of the 50MA.

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