On Wednesday in this blog we posted about the GBPJPY winding up and getting ready for price to breakout. You can read the original post HERE. As we discussed in that post, the longer price goes on winding up, generally the more powerful price is when it finally breaks out. Price had formed 4x candles that could not break the high or low of the housing candle which was important because once the high or low of the housing candle was broken the breakout was going to be on and price would look to move out.
The trend was higher and price the majority of time will breakout in the direction that the trend was moving before it went into winding up. Once price finally broke out of the housing candle and burst through the high, it set off a heap or fresh orders that acted like setting fuel to a fire and price roared higher. For the traders who are well versed in how to trade breakout setups this was a high probability trade with minimal risk. If you would like to learn how to trade more advanced price action setups such as breakout and continuation setups check out the Forex Price Action Trading Course Page.
GBPJPY Daily Chart
Nice one John, I've got my pips on this one !
I get in 1 pips above housing candle and bank around 160 pips yesterday. Thank you Johnathon!
Could you please can you advise me Johnathon how many pips after housing candle will enter the order??