WEEK ENDED 1.3.2014  (Part III)

Now for the review of GBPJPY forex pair.

1 HOUR CHART

The earlier sell signal was cool.
Price drops to 163.97 region from the initial trade entry at 168.88 - a whopping 491 pips pocketed.

Okay, now let us focus on the recent buy signal (blue circle).
We could enter around 170.11. (Remember to use a Stop Loss - i recommend 200 pips)
Price dips to a low o f 169.04 on 20 February 2014. - loss of 107 pips - still far away from the 200 pips Stop Loss.

Price has been very choppy until recently.
Recent close is at 170.31 - a measly gain of 20 pips. This is bad. And is sad.

4 HOUR CHART

Wow, we had no chance. The last buy signal was way back in September 2012.
Entry could be around 125.46.
Low of 124.40 on 13 September 2012 - barely touching the 200 pip Stop Loss - 106 floating loss.

At recent close of 170.31 - a massive gain of 4485 pips!!
Bravo to those who have the bravery to held their trade for such a long period of time.


DAILY CHART

Entry could have been at 143.79.
Peaking at 147.91  - a gain of 412 pips.
But the price made a low of 137.85 on 24 February 2013. - a loss of 594 pips.
That shows how volatile this GBPJPY can be. We had a potential gain of 412 pips - but to those who held on tight, a loss of 200 pips (remember we always set Stop Loss at 200 pips) is guaranteed.
Perhaps volatile pair like GBPJPY deserve a higher Stop Loss to be set? Frankly speaking, it all depends on "What can you afford to lose?" - never ever bet on losing what you cannot afford to lose. That is the basic idea.
Now if we assume we are setting a stop loss of > 594 pips - up till recent close of 170.31 - that is a big gain of 2652 pips! Amazing.

* I will not be reviewing the last pair USDJPY as mentioned in my earlier post. I am too tired and sleepy at this moment. Cheers!