DislikedGBPJPY.....Taken another bite of the Cherry....Sell @ 133.38........Grab a few Shillings before CashBox gets out of bed. R Update Closed all gbjpy trades for now {image}Ignored
The chart picture is my journey trading gj this week so far...it's the flow of the market where you can see the big $ people coming in and reversing the trade direction. You can see where they were accumulating to go long from Friday through Tuesday. then Tuesday they were done and the marketmaker released price from it's sideways action. Price went up, first profits taken to cover stops. Price came down 50% to a double zero. Edged up, came back to the double zero area to fake retailers back short, but sentiment shows bullish divergence so take it long (if you're not asleep) and back to a double zero 134 area.
I've documented these individual trades above via chart pics with trade journal pics as I've taken the trades. this chart pic puts those trades all together to show the flow of the market so far this week. It's fun...i rather enjoy it! If one can be patient and watch and wait and grab onto the institution's coat tails it can be a rather fun ride.
Institutions don't trade non-farm or other red news events right when non-farm happens...they start trading it a few days before. And, it doesn't matter what the big news announcements end up being (which way we think price should go) because the big money has already made their moves to position for where they want to be. So, if a retail trader thinks 'hey, that's positive news for the pair, price should go up, i'm going long' and price goes the other way...it's because they're trading it a few days too late, the institutions are using the retail trades to close trades, and the retail trader is left holding the bag once again...an empty bag.
There are typically six "news trades": 1 - several days before as $ positions for the news 2 - a day up to several hours before the news as price comes back due to prop firm traders get flat/get out before the news to lock in profits 3 - going back in the original direction after the prop firms have gotten out and given you a better price coming into the news 4 - a couple minutes before the news (two ways to play it: go with the direction of sentiment at a 15 min or 1 hour supply/demand box or set limit orders with sentiment at 1 hour supply/demand boxes. 5 - seconds after the news (rarely goes well due to whiplash and sudden fear) 6 - around a half hour after the news when price comes back to and tests the moving average on the 15 min chart (you miss the whiplash)
Which of these 6 "news trades" do you want to participate in? I've done all of them and #5 doesn't work consistently. the biggest moves in order of lowest risk are 1, 2 and 3.
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