GBPJPY has been in a downtrend since quite sometime now. This is yet another opportunity to sell again in this London session.
I use moving averages to identify trend and individual index strength and weakness to identify the pair.
Moving averages used are 12 EMA.. 34 EMA High , Low and close which works as a tunnel. And 144 and 189 EMA shows the long term trend.
If 12 enters the 34 ema tunnel then its in congestion and hence I wait for price to break out or till a clear trend is seen where Price bar is trending clearly below or 12 and all moving averages are aligned correctly.
Before entry I check if both indexes in the currency pair are moving opposite each other.
I use moving averages to identify trend and individual index strength and weakness to identify the pair.
Moving averages used are 12 EMA.. 34 EMA High , Low and close which works as a tunnel. And 144 and 189 EMA shows the long term trend.
If 12 enters the 34 ema tunnel then its in congestion and hence I wait for price to break out or till a clear trend is seen where Price bar is trending clearly below or 12 and all moving averages are aligned correctly.
Before entry I check if both indexes in the currency pair are moving opposite each other.