Pattern Reversal: Multiple 4H RSI divergence in same zone!

2022年1月12日

Technical: RSI Divergence in 4H chart generally brings pattern reversal in GJ. I have seen it many times before. Specially if two or more divergence happen for few times in the same price zone. There was a failed H&S also which means after forming the H&S the big players tried to take the direction in opposite way to fake it out and now they are accumulating their short position. It may test 157.76 area (the high created few days back) and also may test Oct high (158.20). So I am going to put my SL few pips above that (158.47)

Fundamental: Interest rate and other fundamental data was really good for GBP which drove the price to 149.53 to 157.63 in just 2 weeks time. Now as US is going to raise the interest rate and also will take hard measures to control inflation so it will added extra pressure on GBP and big investors generally take their position slowly much earlier than the actual decision come. So they are trying to fake out in the Long direction and then ultimately crush the price. It looks like JPY is really powerless at this moment so for this pair at this moment price movement is fully controlled by GBP.


My Trade:
Short at 157.32
TP: 152.51 - 152.75 zone
SL : 158.47
Target Timeline : End of January 2022



NB: This is not a financial advise. Do your analysis before entering any position.

2022年1月13日

註釋

Guys the trade is going good. Later on it created another big RSI divergence in 4H chart and also fundamentally US inflation hits record high and so Fed (US) has to take some immediate action to control the inflation. so its going to be hit GBP pair badly and hence big investors should change there position within few days. There could be some fake breakout attempt before it goes down. So you can change SL 50 pips above the last high of Oct.. I amended my SL to 158.70 just to avoid fake breakouts.

2022年1月13日

註釋

I have engaged 2nd pair of Sell order.

Order #1 Short GBPJPY
Sell @ 157.32
TP @ 152.80
SL @ 158.70 (I may create a Hedge locking at that price if Price Action permits so)


Order #2 Short GBPJPY
Sell @ 157.03
TP @ 152.80
SL @ 158.70 (I may create a Hedge locking at that price if Price Action permits so)

Target Timeline: End of January / Mid February

2022年1月13日

註釋

Both the Trade going well in profit. If you are a short-term trader/Day trader you can take profit. and wait for another short entry when some pullback happens.

For long term trader - sit tight and enjoy profit. There could be a pull back happen at the beginning of London Session.

2022年1月14日

註釋

Trade is going really good and as per plan

2022年1月18日

手動結束交易

Closing both my trades with profit as price action looks like I may get better entry point again in this week (most likely Thursday/Friday UK session). Will re enter the short position again from top.

It may test 157.10 resistance or even can test 158.28 resistance

2022年1月19日

註釋

Reengaged my Sell order -

My Trade:
Short at 156.05
TP: Open
SL/Hedge Lock : 156.94

2022年1月19日

手動結束交易

There are mixed Signal in GJ and that's the reason I am closing all my short position with profit. I may do some scalping but will enter a long term position if I get enough confirmation.

Right now there is a accumulation zone building up in 155.60 zone so I'll let the big guys to build their position. on the other hand price cannot break the support of 155.48. Finally the reason I am mostly concerned is the recent 4H divergence in the early signal of reversal.

Thats the reason I am exiting all my short positions with profit.