Thread: Trend of the Day

Originally Posted by Franosh

Hi, Greg. Would you mind having a look at GBP/JPY and Cable? It would be really appreciated. Thanks.

GBP/JPY has a clearly defined Double Top on the daily chart. However a Double Top in an uptrend does not always mean a reversal of trend. Look at the GBP/JPY Double Top on April-May of 2009. We made new highs after that. Look for the 146.74 area to be tested which is in the neighborhood of the 200 SMA on a daily chart. If this level holds, we could see a bounc back up to the green daily trend line. if we close below this area, then I believe that we can be confident that the uptrend has reversed and we would look to trade this pair from the short side. See the attached chart:

Originally Posted by Kimaki

Good morning Greg, I actually set a price alert at .7087 and was able to get in at about 10 pips above. Its now up about 25 pips. EURJPY took a sudden dive this morning, having trouble getting past 133.711 what do you think is up with her?

I am thinking that is pair may top out at the 134.36 neighborhood. The Japanese foreign minister is talking abandoning the "Weak Yen" monetary policy. This could change the long term direction of the Yen Complex.

Thanks Greg.

Originally Posted by Gregory McLeod

I am thinking that is pair may top out at the 134.36 neighborhood. The Japanese foreign minister is talking abandoning the "Weak Yen" monetary policy. This could change the long term direction of the Yen Complex.

Pound Yen Bulls have Reasons to Cheer

Though the previous Double Top that started in June and led to a 1400 pip slide from the August 7th high of 163.07 to lows in the 149.00 is short term bearish, the there are reasons for bulls to be encouraged. A Double Bottom in an uptrend above the 200 Moving average in a Fibonacci support zone is a recipe for continued prices heading higher.

Good morning to you Greg.

Originally Posted by Gregory McLeod

Pound Yen Bulls have Reasons to Cheer

Though the previous Double Top that started in June and led to a 1400 pip slide from the August 7th high of 163.07 to lows in the 149.00 is short term bearish, the there are reasons for bulls to be encouraged. A Double Bottom in an uptrend above the 200 Moving average in a Fibonacci support zone is a recipe for continued prices heading higher.

Originally Posted by Kimaki

Good morning to you Greg.

Have a great Trading Day!

hi greg,
thanks for everything.
i wanna put sl to 146,19
is it good ? or 149,00
sorry for my bad english)
thanks

Thx Greg for this Chart of the GBP/GPY.
It helps a lot like always.
Good day!

Originally Posted by Elle

Thx Greg for this Chart of the GBP/GPY.
It helps a lot like always.
Good day!

You are very welcome!

Originally Posted by umt74

hi greg,
thanks for everything.
i wanna put sl to 146,19
is it good ? or 149,00
sorry for my bad english)
thanks

Hello. I would look at placing my stop just below the daily low of 148.61 maybe 10-15 pips below that low.

Hi Greg

This is probably a very basic question...

How do you decide when to exit a trade - Stochastic crossover or wait until your risk reward ratio is met?

For example, I entered short on EUR/NZD and set a limit equal to twice my risk. The trade went as low as 2.0591 and has now traded sideways for the last 24 hours. The 15,5,5 Slow stochastic K line crossed over the D line two 4 hour candles ago in oversold territory and the 5 ema has crossed above the 9sma.

The indicators are saying close the trade ( backed up by what happened on the previous two swing lows) but I haven't achieved the 1:2 Risk reward level.

Do I stick in there and either get stopped out or make the 1:2 reward ratio or do I take profits and wait to enter again in the direction of the trend when price becomes overbought?

Originally Posted by Hawali

Hi Greg

This is probably a very basic question...

How do you decide when to exit a trade - Stochastic crossover or wait until your risk reward ratio is met?

For example, I entered short on EUR/NZD and set a limit equal to twice my risk. The trade went as low as 2.0591 and has now traded sideways for the last 24 hours. The 15,5,5 Slow stochastic K line crossed over the D line two 4 hour candles ago in oversold territory and the 5 ema has crossed above the 9sma.

The indicators are saying close the trade ( backed up by what happened on the previous two swing lows) but I haven't achieved the 1:2 Risk reward level.

Do I stick in there and either get stopped out or make the 1:2 reward ratio or do I take profits and wait to enter again in the direction of the trend when price becomes overbought?

If your indicators and price action are pointing opposite your trade and you have some profit in your trade, you can always close the trade and wait to see if you can get a more favorable re-entry or choose another pair. No sense in letting profit evaporate if the reasons for entering the trade are changing. With that said, keep in mind that as soon as you close this trade, it may drop for more. You just can't beat yourself up over any decision that you make.

Originally Posted by Gregory McLeod

If your indicators and price action are pointing opposite your trade and you have some profit in your trade, you can always close the trade and wait to see if you can get a more favorable re-entry or choose another pair. No sense in letting profit evaporate if the reasons for entering the trade are changing. With that said, keep in mind that as soon as you close this trade, it may drop for more. You just can't beat yourself up over any decision that you make.

Thanks Greg

Originally Posted by Hawali

Thanks Greg

You are very welcome.

Euro Prepares More Dollar Punishment

Thursday, the Euro took a break from crushing the dollar. According to SSI, retail traders are short the Euro by a ratio of 2.58 traders to 1.

SSI is a contrarian indicator and implies that the Euro uptrend will continue. The EUR/USD is above its 200 SMA and continues to make higher highs and higher lows. Look to get long in the 1.4669 area or at a 2 pip break above the 1.4759 area to target the 1.4826- 1.4900 area.