My Millionaire Goal

I learnt that trendlines, Fibonacci Levels, Support and Resistance, moving averages etc tend to possess some weird magnetic property… They will normally attract prices to themselves before repelling them away..

Magnets

In the chart above, any attempt to sell below candle A will be unwise.. There’s a bearish trendline slightly above candle A… This trendline acts like a megnet… when it detects that price is nearby, it’ll attract the price to itself  before repelling it away… Thus, whenever price is near a magnet, it is wise to wait for the price to bounce off the magnet (candle B) before initiating a position…

GBPJPY 27 Apr

This is a trade I missed…. I could have sold one pip below Candle A, which is an outside candle. Another possible entry is one pip below Candle B, which is a Pin bar.

However, in both cases, the signal candles did not really stand out… I would prefer candle A and B to be longer… so, I chose to skip this trade… which, unfortunately is working out fine at the moment… oh well…

Reason for entering trade:

1. Resistance at long term bearish trendline (Candle A)
2. Resistance at moving average and Fib 61.8 (Candle B)
3. Price Action
4. MACD Divergence (refer to “The bigger picture” below)

The Bigger Picture GBPJPY 27 Apr

The Even Bigger Picture GBPJPY 27 Apr

Update:

This trade would have netted 296 pips if entered below candle A, or 254 pips if entered below candle B.

A Trade I missed

Can buy one pip above candle A, because

1. The candle before candle A broke below a recent low, setting up a bear trap.
2. Candle A and the prior candle are up, down candles (both opened and closed on opposite sides of the moving average).
3. Breakout of moving average failed.