Simple's Green Room

[pennies2007]

GJ Hourly Trade Setup

No problem Qui. Gotten run real quick after this post. Basically, all I did was follow the zones for this trade. I'll get to my little sleight of hand trick with the 1.5480 to 1.5540 trade in another post.

First thing I had my eye on from yesterday was the fact that GJ had broken well below a previous weekly high (blue dashed line at left of chart). Second, price action had moved well below a previous red zone that was originally a demand zone but had turned into a supply zone based on the last hard turn down we had once price rallied back to that level. That's where that small green zone was formed. Notice also how that green zone coincided with the 61.8 fib retest but I really didn't pay much attention to that to be honest until now.

Ok, so we were expecting a sell off from that zone..so that takes care of our entry. But what about the exit?

Well, next we have a big 104 pip demand zone below there where that previous gap below 1.55 appeared. So I just aimed for the gap fill. I got out early but it did go ahead and fill nicely after all.

So there you have it...that was the nuts and bolts of my short trade entry early this morning. Notice the same basic thing happened in that gray zone further up. That zone used to be demand and it coincided with a weekly support level (red dashed line at the very bottom of the zone). Then, when price finally broke below it, it came back up to test it and then came crashing down.