Categories: Technical Analysis

GBPJPY prepares the ground for a Buy

GBPJPY made a nice up move since yesterday and created a bullish convergence. Classical? For sure not but it is still convergence and it still made new highs so we should take into consideration. Also on the H4 chart we can see that there was a clear band-to-band move (bollinger bands). Basically the idea here is to join after we see a double wave correction on the lower time frames. So drop down to the H1 chart, which is also forming bullish hidden divergence, that gives us extra bullish confirmation, and wait for the duplication to complete. Than you can go for a buy.

Technical Overview:
H4 – Bullish Convergence, Band-to-Band Move

H1 – hidden divergence, potential wave duplication, 20+ candles ride on the bollinger bands

Entry:
H1 – Wait for the price to create that double wave correction down and go for a buy. You can confirm your trigger once the price is inside the duplicated wave zone and MACD’s histogram slope turns bullish. Ideally we want to see a bullish candle pattern as well.
Target 1: 183.90
Target 2: 184.80
Stop Loss: below last low created

Video Explanation:

Yours,
Vlad

Vladimir Ribakov

Following 11+ years of trading experience, trading my own accounts as well as for hedge funds and brokerages, I have decided to fulfill my destiny and to personally mentor Forex and Commodities traders. When I released the “Broker Nightmare” (software that hides trades from brokers) 8 years ago, I found an overwhelming number of frustrated people who genuinely wanted to learn how to trade the Forex market, but instead found themselves scammed and misled. Over the years I have also release other trading systems based on my trading strategies, and met a lot of people on my worldwide Forex seminars. We’ve formed a close Forex community and we meet once or twice a year in various locations in Europe.