You’re in safe hands! We shall tell you how to trade GBPJPY profitably. It gets better. Not only will you find out how to trade GBPJPY, you will then be able to apply this style of trading to any market so that you can take advantage of a far wider range of opportunities.
What many of my clients are often surprised to discover is that we trade all markets in exactly the same way according to the story the chart is telling us, using the universal method of analysing price action and interpreting the story it tells us.
We look out for the same price-action set-up on the daily timeframe, have the same rules for entry, manage the trade and take profit targets in the same manner regardless of what the market is we are trading.
Imagine a scenario where you can trade just one strategy which you can use on currencies, indices and commodities on just one timeframe?
That’s trading price action in the way of The Lazy Trader – keeping things simple and effortless but a big profit potential in mind.
This style will save you time and money… it will also save you from jumping around from strategy to strategy in pursuit of the “next best thing”. Heck, we’ve all been there!
So whether it’s trading a bullish pin-bar-reversal on Gold, a doji on the FTSE, or double inside bar breakout on USDCHF, we trade it the same way regardless of the instrument is!
Not only does our trading style takes minutes a day to trade but can work universally across all markets and timeframes giving us fantastic profit potential and variety without being chained to the desk. It’s the win-win-win. Why have it any other way?
So now we have now established why trading price action on the higher timeframes is the smart thing to do and that we can apply price action to all markets.
But what happened with ‘The Twisted Sister’ aka GBPJPY?
Pssst! How to trade GBPJPY
Even you will be learning how we traded specifically GBPJPY in the example below, we would have analysed the chart and traded it exactly the same way as if it was a currency pair or precious metal…this just happens to be the twisted sister! We apply market analysis and understanding of price action to arrive at the conclusion: to trade or not to trade.
So how did we trade the GBPJPY in April 2012? We traded it according to what we saw on the chart...nothing more – nothing less!
We saw that price action on the daily timeframe had retraced to a horizontal level of support and the daily bar had closed as a bullish pin bar reversal on the 14th April. Not only was this pin bar reversal rejecting a horizontal level, this horizontal level @127.91 overlapped with the neckline of a bullish double-bottom reversal pattern. This gave this level extra brownie points for being a strong barrier in the way of price action falling further but more as a ‘launch pad’ for the GBPJPY’s to continue its upward thrust for a trend continuation.
What is more, this level over-lapped with a 0.382 Fibonacci retracement (taken from the low of January 2012 to then swing high of March in the same year). An extra tick in the box in support of the trade. But wait…there’s more! We also had bullish divergence which sealed the deal in this being a trade worth of taking long. Bingo!
We had more technical reasons in support of a long than the argument for a short so we placed that trade as an order. We never just jump in live at market…that’s what amateurs do! We’ll leave such thrill-seeking antics to them…
With our entry at the mid-point of the bullish pin bar reversal (127.72) and our stoploss below its low at 127.06, we had a provisional target at 130.35 at a price point lower than the previous swing high for a higher probability outcome.
After our analysis which took barely 5 minutes, we placed the orders, walked away and reviewed the trade 24 hours later. Sure enough, we had been triggered into the trade and were nicely in profit. However, we weren’t quite home and dry yet! We had to objectively manage this trade according to our strategy rules…and we did. We trailed our stoploss to bank profit as well as give our trade enough room to breathe.
We adjusted our stoploss twice in four days we were in the trade, talking not more than 2 minutes on both occasions and on the 23rd April, we were taken out of the trade…but at a 7.7% gain.
A 7.7% return…not bad for less than ten minutes “work” over all, huh?
That’s set-and-forget Lazy trading price action from only minutes a day. To find out how this style of trading can benefit you and how easily you can seamlessly integrate it into your lifestyle, check out our flagship programme:
The Lazy trader Ultimate.