GBPJPY Technical Analysis SELLHey Traders,
Today we look at at the Pound next to the Yen. Numerous of my signals indicated a sell coming along with some use of price action. For this article though we will focus just on the indicators I used and why. So to begin. What signaled my entry besides it reaching a place of resistance was my Aroon Indicator.
Aroon Indicator: When the red line crossed over the green and hit the 100% line it indicated strength in the bear momentum and so I began adding my other indicators to confirm for validity. The Aroon is a great tool but gives a lot of fake signals so always confirm before entering a trade. ( Also great exit indicator )
Next up I look at my next confirmation signal the Bear Bull Power Trend indicator: Indicates bears are gaining power as bulls lose steam.
Next up Coral Trend Indicator which in this case caught on very early that it was a sell. This indicator is usually my confirmation as it lags but in this case it preceded the others which is a strong indication of downward movement.
Lastly of what I will post I checked volume movement and confirmed bears are gaining power.
On the chart I show ideal entry and stop loss along with three take profits. Divide your risk among three trades and use the different take profits as a moving stop losses.
Do your own analysis, this is just my thoughts.
