Signal for 23/07/2009 for: GBP/JPYRecap of yesterday’s session: We had a strong upward movement in the price yesterday making it quite tricky to jump in a trade. However, price clearly broke the level of concern for an upward move well before London open, and trading with the 20 and 50 MA set-up meant that we would have had good opportunities to catch some big profits. Today's Signals: Our levels of concern for today 24.07.09 are as follows: R3-161.837 Possible Scenarios: Buy Signal: For a buy signal to occur, I will wait for price to trade above our pivot point by London open. A trade may be quite tricky today due to the big upward move experienced yesterday. I expect price to retrace near pivot for the day by London open. I will start looking for a valid buy set up at the break of 156.10. This will be an aggressive buy with first target set at 156.55 and second target set at 156.92. I will exit my entire position at this level to maximize profit. My next level of concern will be 157.30. If this level is taken out, I will start looking for a valid entry buy with target set at 158.00. We may encounter some resistance at 157.65 on the way up. Money management is crucial to maximize profit. Take partial profit as price heads up and bring your stop loss to break-even. Please remember, those are simply possible target where price may head up due to heavy cluster formations and analysis. This is not 100% accurate, no system is. Take profit each time you reach a certain level and bring your stop to break even. Sell Signal: We have some heavy support at around pivot point today. If this level is broken by London open, I will wait for price to trade below 155.25 level to start looking for a sell signal. My only target if I get a valid sell entry is set at 154.45. However be careful if price start approaching 200 MA. Look at you higher time frames to see how price is reacting. Remember that proper money management will be needed to maximize profit. Wait for retest of the levels given once broken or until a bullish candle is formed after the retrace (preferably on 15 mins chart making sure that the 20EMA and 50SMA obeys the rule of entry) PS – You may decide to use your own strategy and use those levels as entry and exit points Happy Trading Back to: Free Forex Signals Page Back to: Forex Trading Homepage
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