When I did my analysis on GBP/CHF, I also looked at GBP/JPY. Unfortunately then, though, I didn’t see a pattern I liked, and even if one formed, the R:R was way too low for me. When I got to the charts this morning, GBP/JPY had pushed down — reached my would-have-been target — and was sitting above that level. On the 15 min. chart, it was in a clear bear rally, and had a 1.7 R:R.
It’s not great, but my rules have been above 1.5, so I set an entry order. There is another level of resistance above my target that I’ve set as my point to move my stop to break even rather than 1R. That feels more safe.
Entry – 132.04
Only a couple hours after setting my entry order, price pushed down and triggered my entry.
| Entry Order Level |
|---|
| 132.04 |
| Stop Loss Level |
| 132.7 |
| Target Level |
| 130.95 |
Exit – 132.715
Just as GBP/CHF was steadily moving lower, GBP/JPY began to. This also had a less than 1.5 R:R, but I really liked the pattern so I took a full position, and rather than waiting until 1R to move my stop, my plan was to move it when it got to a nearby support level. Price hadn’t reached that level throughout the day, though it did get within 10 pips at one point (which wasn’t quite close enough for me).
I ended up going to bed, planning on checking on it in the morning. In the AM. it was up, but appeared to still be within my parameters (and with futures opening weak on Sunday, I definitely thought this trade was one to hold on to), but when I looked at the chart, at some point throughout the night price rallied enough to stop me out at my stop-loss level for a big loss.
