how to trade gbp/jpy successfully?
The M15 chart of the pair is used to trade the strategy. The opening and closing times for the American and Asian sessions should be kept the same. The terminal time is 23:00-02:00.
Draw horizontal lines through the highs and lows of the price. Backorders for the break-ups should be slightly higher and lower than the drawn levels.
If there are two orders, remove the first one. If neither is activated within 4 hours, try again the next day.
The less strong movement is likely to develop if the hallway is narrowed. The move is unlikely to continue after the break. The highest volatility changes to lower, then higher and again.
It's important to watch for low volatility in order to catch higher volatility later on.
There will be no movement after the break because the volatility is high. If the channel is more than 70 points wide, you shouldn't trade.
Let's take a break of the channel as an example of a short trade.
The start of the channel is at 23:00, the low of the channel is at 152.74, and the high is around 152.86. The price went down after the lower edge of the channel was broken. At the two range level, place a take profit. The move was strong and triggered the TP.
We need a Sell Stop pending order to open a sell position below the current market price. The strategy must be placed 2 points below the minimum.
In our case, it is 152.72.
A stop loss behind the high of our range will prevent random price movements against our position. We placed it at 152.95.
If the price doesn't reach a TP before the American session starts, the position should be closed. It is said that if the market does not follow the strategy, it is better to quit.
The range is going to be broken to the upside. The low of the price that subsequently tested was seen at 23:00 (11 pm) on the start of the channel. The maximum was over the limit.
The price broke out of the channel at 02:45 am. The growth was more than two channels.
The TP is 18 points and placed at 152.25.
We use a Buy Stop order to open a buy trade above the current one.
The maximum of the range is placed 2 points above the rules. This time we place it at 150.08.
If we want to avoid accidental moves against our position, we need to place anSL behind the bottom of the range. In this case, we put it at 152.95.
You can improve and complement any strategy to make the work more efficient. We are interested in low volatility.
The standard deviation is a indicator that can be used to detect this. The standard deviation is the price minus the moving average.
