GBPJPY Role Reversal Level Holds & Profits | Apr 4th

GBPJPY – Role Reversal Level Causes Strong Sell Off and Profit
Yesterday in our daily market commentary from April 3rd, we suggested selling the GBPJPY at the role reversal level of 172.50, as the pair was forming (in our view) an LH (lower high).

Today the pair sold off heavily from the level, never going above it, dropping over +130 pips from here, so hopefully you profited from this trade setup that never went negative.

Traders not already short can look to get short at 172.15, while more aggressive bears can look to get short at 171.80 on weak corrective pullbacks.

NOTE: If you were waiting for a price action signal or pattern to get short, you would never had profited from this trade setup.

gbpjpy daily market commentary

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I'm Chris Capre, Founder of 2ndSkiesForex. I help traders of all levels change the way they think, trade and perform. As a professional trader, I specialize in trading price action. As a teacher, my passion lies in showing you how to re-wire your brain for successful trading. Want to improve your edge right now? Visit my Price Action Course page.

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  • Jewell

    Hi Chris.. also a PPB here before the sell off.

    • Chris Capre

      Hello Jewell,

      PPB?

      Kind Regards,
      Chris Capre

  • Jewell

    Sorry.. Pre-Pressure Breakout :)

    • Chris Capre

      Do you mean a price action squeeze to the downside?

  • Jewell

    Yes Chris.. the 20 ema carry and pressure / squeeze against the line in the sand on 172.14 then trigger stops and the sell off run…

    • Chris Capre

      Yeah, as a second/sub-optimal entry, could have worked, but with NFP, not preferable.

      Our entry was at a tighter level which was more likely to house sellers, with the first target being the 172.19 entry you had, so more preferable to sell higher.

  • Thomas Voss

    Where exactly would we have gone short here? What was the indication that it would break lower? I see the price squeeze up against the red line for a break to the upside. What exactly was the clue here? I´m going true your course, but at the moment just going true all the free stuff first, to get a base before i start your course.

    • Chris Capre

      Hello Thomas,

      The entry was at the role reversal level I mentioned. The indication that it would break lower was a combination of things which are mentioned in the article, such as;
      1) forming of the LH (lower high)
      2) break below role reversal level
      3) 20 ema dynamic resistance
      4) weak pullback into the level after impulsive sell off

      All those together suggested likely break lower and false break (above the marked role reversal level). So the entry was the level itself, and not a singular ‘clue’, but many things combined.

      Hope this helps.

      Kind Regards,
      Chris Capre

  • Thomas Voss

    Thanks it helped a lot, i hope in some months it will look more clear. As a former pattern trader i feel naked when there is no candle formation before a trade, i need to turn that around. Thanks