Sanju's H1/ H4 Trades

[fxodyssey]

GBPCAD Long Trade

See, what whining can bring.... After watching this pair from the sidelines for two days, I am finally in.

Long at 1.8320
Stop at 1.8230 ( whew!!! a whopping 90 pips )

TP1 = 1.8410 ( 90 pips ) At this point, I will move Stop to BE

TP2 = 1.8500
TP3 = 1.8550

[fxodyssey]

This must be a joke, right.... See what I found, few minutes from entering the GBPCAD long....

[fxodyssey]

only the 4HR picture, gives me confidence. Could it be because, CAD Interest rate news is coming out, 50 mins from now Probably, I should have waited to trade, right after the news release....

[Dave]

Hi Sanju,

Just a quick observation regarding your trade and the importance of noticing and accounting for DIVERGENCE. Divergence occurs when price makes new highs but the eWave fails to make corresponding highs. That is, the market is losing momentum.

With reference to your chart, Price(B) > Price (A) & eWave(B) > eWave(A), therefore an entry where I've marked the green line could be considered valid (this is also a great example of the Famous Setup - strong W3, sideways during Asia). But where you have taken your entry, while Price(C) > Price(B), eWave (C) < eWave(B), therefore, price and eWave have diverged and the momentum long is decreasing. It is recommended not to look for continuing long entries when the momentum is decreasing, and instead to wait for the eWave to return to the zero line and begin a new wave sequence, or to take a valid short entry. In fact, the fruit candle at Price(D), coupled with divergence made at eWave(D), is a perfectly good short entry. There is also a fruit candle at Price(C), but there was not really angulation between price and the alligator.

I've also marked these similar points of price and eWave divergence on the short side, where Price(2) < Price(1), but eWave(2) > eWave(1), therefore momentum of this move down was decreasing, and there was a nice little fruit candle at the bottom of Price(2) as well.

gbpcadh1_bearish pin.png

Good luck!

[fxodyssey]

Thanks Dave, for your valuable comments. I actually bailed out of the trade, due to lack of momentum. Well, it did go into profit for a lil bit, that's when I bailed out. I noticed the divergence, but, guess what, for some strange reason, i chose to ignore it.

Your price 2 , price 1 points are also an excellent example.

You just confirmed my conviction in divergence )

Today, I have some time, so I tried some great setups on EU 1 min, based off off, 5 mins.

Since, I started this post for 1 hour trades, I prefer to post my 1 min trades on another thread.

[fxodyssey]

GBP/JPY 1HR Long trade

Entry @ 173.29
SL @ 172.95 ( 34 pips )

TP1 = 173.90
TP2 = 174.30

[fxodyssey]

GBP/JPY update after US Open

Trade is going nice, except that H1 Fruit appearing right before the US open. I choose to ignore it this time. That's the benefit of the DA level and the 4HR chart.

[Michal]

Good luck with trade Sanju i hope you will nail some nice pips out of it. That's when i sometimes struglle with myself because if you look on h1 is nice setup but on h4 you got divergence already but again on d1 price looks like new w5 as nearly all previous aims lvl to the left are broken. It's funny because we have same rules to make an entry but it happens that we dont enter same trades Anyway nice trading

[fxodyssey]

Thanky Micchhaal for your comments.

GBP/JPY hit TP1 nice and smooth. I got out at TP1 with my entire position. Didn't really think, it's gonna go any higher - Exactly due to H4 divergence.