How Markets Move: GBPJPY
If you don’t currently use Pivot Points in your trading, you may want to consider integrating them into your trading plan. In the chart below we apply the Weekly Pivots to our 60 minute chart, and are shown a straightforward trend trade last night at the confluence of the most recent trend line and the Weekly Central Pivot.
What’s fascinating about about watching set-ups like this unfold is how little the trader contributes. You are just there to initiate the trade and set the stop — in other words the trader’s job is to NOT think, to follow his plan, and to NOT mess it up.
On the 15 minute chart where we would use Daily Pivots both GBPJPY & EURJPY bottomed right on Pivot S1, which is text book price to Pivot Point behavior.
The most interesting part of the set-up and trade would have been had you chosen to get short just ahead of the first test of that Weekly Central Pivot, which would certainly have been acceptable, before the buy signal we’ve highlighted.
Jay Norris
800-971-2154 or 312-896-3986
chitwnj@skype
jnorris@brewerinvestmentgroup.com
To attend a 1/2 hour one on one complimentary tutorial with Jay Norris, and recieve a free chapter on Support & Resistance from his book Mastering the Currency Market call, skype, or e-mail us using the contact info above.
DISCLAIMER: Futures, options and Forex (off-exchange foreign currency futures and options, or “FX”) trading involves substantial risk of loss and is not suitable for every investor. The valuation of futures, options and Forex may fluctuate, and, as a result, clients may lose more than their original investment.