Free Forex Trading Analysis - Continued GBP/JPY Analysis
The forex markets are really fun and it's now finally great that the currencies are starting to move after a considerable time of consolidation. Our Great British Pound (GBP) vs. Japanese Yen (JPY) has turned out to be a very profitable trading currency.
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Where we left off we were looking at a little Elliot Wave Analysis, We used some Fibonacci analysis as well to look at current price movement. I was also biased towards taking a long position, however notice how I did not allow my bias take over and place a bad trade. In the analysis we say cases for both positions. Long or Short (going up or going down). The deciding factor was how the currency behaved at a critical support resistance zone. When the currency broke that zone, then retested the zone and continued down that was a good low risk entry position downward.
Again we are going to take another look at this currency and see if it is now time to get it. As will most analysis in the currency market the decision is to wait. We spend most time waiting as a currency trader and that takes some patience. However, we are just looking at 1 currency, I am looking at all currencies when I am doing my analysis , and there is typically one currency that is always trending.
It is important to understand that we do not "go to the market," meaning that we go looking for entry points. Entry points should scream out at you, and then when you have the confidence and the patience to then tell that market that is screaming at you "ok, so you're telling me to get in, I'll tell you what, you continue your move and if you retest the new broken support zone and then continue in the same direction that I will believe you and then I will get in." This is called the "market coming to us." We then tell the market to give me proof, it does and we then see we have entered at the beginning of a trend.
So back to waiting. Here is another video showing that same GBP/JPY currency pair, and again we are waiting to see what happens and at this point our job is to do nothing but observe.
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