Hello everyone,
today, the Pound-Yen posted a very stellar performance rallying over 180 pips. After a currency pair has performed so brightly, it is usual to find traders who will want to buy the pair at the end of day. In their heart they think that having performed so brightly, there will be no better time to buy apart from now that the steam is still on and the engines revving. This decision has often turned out to be flawed as traders get badly burnt doing this very act.
A wise trader and book-writer once said:
''selling takes place inside strong up bars''
So, in keeping with this timeless truth, I expect that quite a lot of selling has taken place on this pair today. As such I will not be surprised to see a massive sell off on this pair for the rest of this week.
I personally recommend that traders look for reversal candle patterns on the 4-hr tf and take sell positions for the rest of the week from around 158.2x level.
Happy trading everyone.
today, the Pound-Yen posted a very stellar performance rallying over 180 pips. After a currency pair has performed so brightly, it is usual to find traders who will want to buy the pair at the end of day. In their heart they think that having performed so brightly, there will be no better time to buy apart from now that the steam is still on and the engines revving. This decision has often turned out to be flawed as traders get badly burnt doing this very act.
A wise trader and book-writer once said:
''selling takes place inside strong up bars''
So, in keeping with this timeless truth, I expect that quite a lot of selling has taken place on this pair today. As such I will not be surprised to see a massive sell off on this pair for the rest of this week.
I personally recommend that traders look for reversal candle patterns on the 4-hr tf and take sell positions for the rest of the week from around 158.2x level.
Happy trading everyone.
