A very nice looking Gravestone Doji has formed on the 4-hour chart for GBP/JPY. A few points to note:
A) Daily failed to close above 170.00
B) I expect an ABCD pattern to form. If correct, then the timing of this Gravestone Doji is perfect. The ABCD pattern may start its C/D leg at around the 167.00 level, of which is where the downtrend ended and a great buying opportunity may present itself again.
CAUTION:
When trading Doji’s, you should be extremely cautious. The market is telling us that something important has happened, however, what that is I’m not sure. Also, I’m assuming an ABCD pattern is forming, so this trade fits my plan and price may just continue to smash up to the 172.5 level.
For this trade, I would place my stop at 170.00
Plucka.
A) Daily failed to close above 170.00
B) I expect an ABCD pattern to form. If correct, then the timing of this Gravestone Doji is perfect. The ABCD pattern may start its C/D leg at around the 167.00 level, of which is where the downtrend ended and a great buying opportunity may present itself again.
CAUTION:
When trading Doji’s, you should be extremely cautious. The market is telling us that something important has happened, however, what that is I’m not sure. Also, I’m assuming an ABCD pattern is forming, so this trade fits my plan and price may just continue to smash up to the 172.5 level.
For this trade, I would place my stop at 170.00
Plucka.