Sunday, February 10, 2013
Another buy pattern - GBPJPY this time
GBPJPY trades with the decreasing volatility last hours. The volatility may increase soon and the resistance (last maximum) at 146.97 will be punched. Let's put pending sell order 1 point higher the resistance level.
We can use 161.8, 261.8 and 423.6 Fibonacco levels as Take profits and the support (last minimum) level as Stop loss.
As we reach each Fibonacci level close the 1/3 of the order amount and move the Stop loss at the previous Fibo level. For example as we reach 161.8 Fibo level close 1/3 of the order amount and move Stop loss to 100 Fibo level (i.e. entry price level).
BUY STOP order
My entry price: 146.98
My take profit 1: 147.37
My take profit 2: 148.02
My take profit 3: 149.07
My stop loss: 146.31