{"id":1815,"date":"2022-03-29T06:31:19","date_gmt":"2022-03-29T06:31:19","guid":{"rendered":"https:\/\/mdr.foobrdigital.com\/?p=1815"},"modified":"2022-03-29T06:31:19","modified_gmt":"2022-03-29T06:31:19","slug":"day-trading-gbp-jpy","status":"publish","type":"post","link":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/2022\/03\/29\/day-trading-gbp-jpy\/","title":{"rendered":"Day Trading GBP\/JPY"},"content":{"rendered":"\n

The Rules<\/strong><\/p>\n\n\n\n

Currency to be traded: GBP\/JPY<\/p>\n\n\n\n

Chart timeframe: 5 minutes<\/p>\n\n\n\n

RSI setting: 14<\/p>\n\n\n\n

Bollinger Bands\u00a0setting: 20,2,SMA<\/p>\n\n\n\n

Step 1<\/strong><\/p>\n\n\n\n

We start viewing the 5 min GBP\/JPY at exactly 00:00. We wait for<\/p>\n\n\n\n

the\u00a0RSI\u00a0indicator to either reach a reading of 70 or a reading of 30.<\/p>\n\n\n\n

The first reading that is reached will dictate if the trade is going to<\/strong><\/p>\n\n\n\n

be a long trade or a short trade. If\u00a0RSI\u00a0reaches first a reading of 70<\/p>\n\n\n\n

the trade will be short. If\u00a0RSI\u00a0first reaches 30, the trade will be<\/p>\n\n\n\n

long.<\/p>\n\n\n\n

Step 2<\/strong><\/p>\n\n\n\n

For short trade: we wait for market to penetrate lower part of<\/p>\n\n\n\n

Bollinger band\u00a0by 3 pips and initiate trade at that same exact price.<\/p>\n\n\n\n

For long trade: we wait for market to penetrate upper part of<\/p>\n\n\n\n

Bollinger band\u00a0by 3 pips an initiate trade at that same exact price.<\/p>\n\n\n\n

Step 3<\/strong><\/p>\n\n\n\n

We immediately place out stop loss at 20 pips from entry.<\/p>\n\n\n\n

We place out take profit order at 50 pips from entry price.<\/p>\n\n\n\n

Examples<\/p>\n\n\n\n

\"\"\/<\/a><\/figure>\n\n\n\n

We will quickly go over this first trade example so you can see<\/strong><\/p>\n\n\n\n

how the trade worked out from start to finish on the same chart. On<\/p>\n\n\n\n

the next trade example I will be more specific in my explanation.<\/p>\n\n\n\n

A<\/strong>: 00:00, start time.<\/p>\n\n\n\n

B<\/strong>:\u00a0RSI\u00a0reaches 30 first. This means we will be looking for a long<\/p>\n\n\n\n

trade.<\/p>\n\n\n\n

C<\/strong>: We where looking for market to penetrate upper part of<\/p>\n\n\n\n

Bollinger band\u00a0by 3 pips and it did at 207.53. Long trade is<\/p>\n\n\n\n

triggered.<\/p>\n\n\n\n

D<\/strong>: Stop loss is immediately placed 20 pips from entry at 207.33.<\/p>\n\n\n\n

E<\/strong>: Profit target of 50 pips is reached at 208.03<\/p>\n\n\n\n

\"\"\/<\/a><\/figure>\n\n\n\n

So, we can see that at point A<\/strong> the RSI reaches 70. This means that<\/p>\n\n\n\n

we will be looking for a short trade. If it was the opposite and the<\/p>\n\n\n\n

RSI would have reached 30 first we would have been looking for a<\/p>\n\n\n\n

long trade.<\/p>\n\n\n\n

At this point the RSI does not concern us anymore and what<\/p>\n\n\n\n

matters now is the market price and the\u00a0Bollinger band. We are<\/p>\n\n\n\n

now waiting for the market to penetrate the lower part of the<\/p>\n\n\n\n

Bollinger band by 3 pips, and it does so at point<\/p>\n\n\n\n

B<\/strong>. We enter ashort trade at 208.72 and immediately place our stop loss 20 pips from entry or 208.92 (point C<\/strong>). After stop loss is placed we either wait for the market to reach our profit objective of 50 pips or we enter a take profit order with our forex broker. At point<\/p>\n\n\n\n

D<\/strong> we cansee the market easily reached out profit objective and the trade turned out to be a 50 pip winner.<\/p>\n\n\n\n

\"\"\/<\/a><\/figure>\n\n\n\n

A<\/strong>: 00:00, start time.<\/p>\n\n\n\n

B<\/strong>: RSI reaches 30 first. This means we will be looking for a long<\/p>\n\n\n\n

trade.<\/p>\n\n\n\n

C<\/strong>: We where looking for market to penetrate upper part of<\/p>\n\n\n\n

Bollinger band by 3 pips and it did at 209.89. Long trade is<\/p>\n\n\n\n

triggered.<\/p>\n\n\n\n

D<\/strong>: Stop loss immediately placed 20 pips from entry at 209.69.<\/p>\n\n\n\n

Market reached our stop loss and trade got stopped out for a loss of 20 pips.<\/p>\n\n\n\n

E<\/strong>: As per the system rules we re-enter trade at 210.08 (3 pip<\/p>\n\n\n\n

penetration of Bollinger band). In this occasion it was a long trade but could have been a short trade as well if the opportunity would<\/p>\n\n\n\n

have appeared first.<\/p>\n\n\n\n

F<\/strong>: Stop loss immediately placed at 209.88.<\/p>\n\n\n\n

G<\/strong>: Profit target of 50 pips is reached at 210.58.<\/p>\n\n\n\n

\"\"\/<\/figure>\n\n\n\n

A: 00:00, start time.<\/p>\n\n\n\n

B: RSI reaches 70 first. This means we will be looking for a short<\/p>\n\n\n\n

trade.<\/p>\n\n\n\n

C: As expected the market penetrated the lower part of Bollinger<\/p>\n\n\n\n

band by 3 pips at 212.36. Short trade is triggered.<\/p>\n\n\n\n

D: Stop loss immediately placed 20 pips from entry at 212.56.<\/p>\n\n\n\n

Market reached our stop loss and trade got stopped out for a loss of 20 pips.<\/p>\n\n\n\n

E: As per the system rules we re-enter trade at 212.91 (3 pip<\/p>\n\n\n\n

penetration of Bollinger band). In this occasion it was a long trade<\/p>\n\n\n\n

but could have been again a short trade as well if the opportunity<\/p>\n\n\n\n

would have appeared first.<\/p>\n\n\n\n

F: Stop loss immediately placed at 212.71.<\/p>\n\n\n\n

G: Profit target of 50 pips is reached at 213.41.<\/p>\n","protected":false},"excerpt":{"rendered":"

The Rules Currency to be traded: GBP\/JPY Chart timeframe: 5 minutes RSI setting: 14 Bollinger Bands\u00a0setting: 20,2,SMA Step 1 We start viewing the 5 min GBP\/JPY at exactly 00:00. We wait for the\u00a0RSI\u00a0indicator to either reach a reading of 70 or a reading of 30. The first reading that is reached will dictate if the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[341],"tags":[],"_links":{"self":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/1815"}],"collection":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/comments?post=1815"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/1815\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=1815"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=1815"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=1815"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}