GBPJPY daily chart 150-pip pullback sell with 4 consecutive wins +590-pip signal example

Hello!

FX Research, Satori here.


This time, I will share an example of a 150-pip pullback sell on the GBPJPY daily chart, with 4 consecutive wins and a signal of about +590 pips.

In the previous blog, I covered an 8-win example on GBPJPY 1-minute chart, but on the daily chart as well, just like the 1-minute chart,

the price forms an uptrend by raising highs and lows, and forms a downtrend by lowering highs and lows.

Dow Theory is valid across all timeframes, isn’t it?

However, when to use it and how to use it depends on each individual’s experience, perspective, and methods of operation.



The figure below shows an example signal of selling 150 pips down from the GBPJPY daily downtrend, with 4 consecutive wins.

The exit was at the previous valley’s low.



http://livedoor.blogimg.jp/fxmt4indicator/imgs/2/8/28e1b6ea.gif


As shown in the table below, the profits were about 150 pips each, totaling about 600 pips overall.

http://livedoor.blogimg.jp/fxmt4indicator/imgs/2/8/28e1b6ea.gif


Just like the previous 1-minute chart, when a trend is forming, the profit range tends to continue similarly.


Because market psychology comes into play, when everyone thinks “it’s a bit oversold,” buying comes in and it bounces back,

when opinions increase that “we are approaching the previous high, so it should go down soon,” selling comes in and it goes down again,

and when everyone gets used to the downward trend and thinks “now is the time to buy,” more people start thinking that,

selling people panic and buy back, causing a sharp rebound. This kind of movement has not changed since ancient markets, has it?

And this same kind of thing will likely repeat in the future as well.


So, it is expected to repeat in the same way from now on as well.