Chart Analysis for Beginners

[Pip Daddy]

Gbp/usd

There is bearish hidden divergence here. Price has made a lower high or at least a flat high while the oscillator has made a higher high. After a pretty long rally, look for price to fall soon.

 

[Pip Daddy]

Usd/jpy

The 117.00 level looks to be an attractive sell point here. This pair looks "overbought" as well. Since double zero levels are strong psychological support/resistance levels for this pair, I believe 117.00 will hold as resistance and this pair will weaken.

I'm selling at market price of 117.00. My stop is 117.30 which is above the recent high. My profit target will be 116.50.

 

[divinci]

Great thread Pip Daddy! Keep up the good work

 

[Pip Daddy]

Usd/jpy

There's regular bearish divergence here with price making a higher high while the oscillator has not. I'm really believe the yensabi will strengthen soon as look for this pair to come crashing down to its trendline support.

Trade:

I see two ways to trade this pair:

Aggressive. Short now at market price of 117.80. Place your stop at 118.10 above the psychological resistance of 118.00. Take profit at 117.00. Move stop to breakeven at 117.50.

Conservative. Wait for the pair retrace back up to 118.00. Short at 118.00. Place stop at 118.30 above the most recent high. Take profit at 117.00. Move stop to breakeven at 117.70. While this is a safer trade, you risk "missing the boat" if price does not rise back up to 118.00 and instead continues to fall from its current price of 117.80. [