【FX full-time trader cat's GBP/JPY trade analysis 0319】
This is the GBP/JPY for Thursday, March 19.
It bounced off the monthly support. Also, the outer Bollinger Bands are closing in, and on the daily chart the outer band is closing in too, so it’s a tight situation.
In my main trading, I chose to skip this rise. Looking back, I think I should have entered. I still have a bad habit of trying to win “with knowledge, logic, and rules” and “safely, securely, and surely.” Instead, I shorted near the top and closed the position around -1 standard deviation on the 4-hour chart in the early morning around 5 a.m. Because of this, my daily routine is almost a day-night reversal. Of course there are times when it moves during Tokyo session as well.
Volatility is high, so there are still a sizable number of PIPS, but in my main trading the stop is close due to the narrow stop-loss distance.
This is a disadvantage of trading in a high-volatility market: even if the direction is correct, mistiming can easily hit the stop.
On the daily chart.
The pin bar has formed and the outer band is closing in. This is what people call “tight,” but often there is a significant retracement. The market needs a breather.
