Price Action Traders
The price action signal from last time was stopped out. Over the weekend, most of the major trading instruments opened with a gap and amongst them GBP/USD, as well. Although we have been stopped out, it was not a big loss. The price action was still a great indication and that was the right thing to do. There is no 100% bullet-proof trading system and if you are looking for a holy-grail of trading, you won’t find it. It is all about managing risks accordingly. That is why we should concentrate our attention on letting winners run as long as possible and cutting losers fast.
Today’s price action signal is coming from USD/JPY. I am spotting a bearish rejection of the 122.00 level. There was a pin bar like candle yesterday. Today’s candle is a bullish green candle. The price action is telling me that the sellers have been cleared out at those levels and new buyers are coming. Today’s candle was a bullish engulfing one, as well. That is why I will be looking to go into a long position tomorrow. My long entry would be the level of 123.00. The stop for this position would be placed just under 121.85. The first target would be 125.00 and then 126.00. Let’s concentrate on price action and see where it will take us.