07/07/2009 GBPJPY Trade

Long 1 (500 units) GBPJPY @ 5316
Stop @ 5265 (-51 pips)
Target @ 5384 (+68 pips)

I was looking for:

A bounce off 5300, the big figure
Previous low @ 5300
Pivot point

Also:

There was a MACD divergence, possibly an early TriScreen trade.
It was late in the NY session, volume might dry up, leading to reverse in price.
The daily range was > ATR on the daily chart.

Click above for larger image

I was stopped out for a -51 pip loss. The price action didn’t look good on the 1 hour chart, but I took the trade anyway. Not a great trade. The issue was that there wasn’t enough of a price rejection on the 1 hour chart. It looked like it was going to go down more. I also should have gone short since my original premise was proven wrong.