Weekly Price Action Setups & Trade Ideas | Feb 11-16
Chris Capre’s current live trades: BIR, FXo EURJPY, EURUSD
GBPJPY – Role Reversal Zone Held as Resistance, Trade in Profit (Daily chart)
On Thursday, bulls made an attempt to push price back above the role reversal zone (152.50-153.50).
This attempt was heavily countered by the bears defending this zone, slamming price 300 pips lower within just one 4 hour candle resulting in the potential bearish follow through I mentioned in the last commentary, confirming that ST order flow has shifted in favor of the bears.
Along these lines, after seeing price consolidate within a ST corrective structure below the S/R zone preceded by strong ST selling, I decided to trade the probability of a ST bearish follow through, down towards the major support.
I shorted deep into the S/R zone @153.384 as shown in my screenshot below and I’m currently up +289 pips of profit.
As this is a CT trade I gave the trade some extra room to breathe with my initial SL being @ 154.50 and my final target @ 147.50, giving me a potential 1:5 risk/reward ratio on this trade.
Keep up with the members daily trade ideas and market commentary for updates on how we’re trading this.
Congratulations to the course members that were able to catch this move as you should be in solid profit by now.
Next key support in line is 0.7750 and I think there’s a good chance we might see some ST profit taking which could result in a solid reaction from this area potentially opening up for ST trading opportunities.
Keep in tune with the daily members trade ideas and market commentary for updates.
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