(+110) week28 GBPJPY D1 mean reversion trade

This was a trade which strengthen on the concept of mean reversion, price exhaustion on strong SAR levels.

Hence my criterias in trading falling knife trades:

1. Strong SAR , d1 pivot support in this case.
2. Mean reversion, price exhaustion on the next day open.
3. ideally price should be attempting to make a downmove in early session to reach extreme exhaustion before the London session in order to create a Wash and Rinse.
4. Pos size reduction is a good risk management to endure some more downmove before price can rebound aggressively,


Trade first sighted after 2 straight days of plunge. I noticed there was a good d1 pivot support. I endured a days worth of paper loss before price resumed in my favour.

week29 GBPJPY D1 mean reversion from pivot support 090715

Trade outcome +110

I took profit as after this was still extremely bearish momentum. There could be several upwaves before price could resume upwards. tp is good.

week28 GBPJPY D1 mean reversion tp gif 090715


Powerful upmove. Nailed the direction of this trade correctly.
Mean reversion trades needs to be used in tandem with strong SAR, and some notions of WR with price exhaustion.

week28 GBPJPY D1 aftermath 120715


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s